The Textbook Suggests That While Risk Analysis Is Important for Most

The textbook suggests that while risk analysis is important for most kinds of domestic projects, it is even more vital for foreign investments. The reasons why this statement is correct include all of the following statements except

A) MNEs usually have an expanded opportunity set of projects with high return potential but also with higher levels of stand-alone risk.
B) Many components of project cash flows from all perspectives, but particularly from the parent perspective, are driven by host government political considerations rather than by market-driven economic forces, and thereby add a new dimension to the risk of foreign projects.
C) Even though OPIC insurance can protect the firm against many important sources of foreign risks, it does not cover everything, so unique foreign risks still exist on top of the usual risks of a domestic project.
D) Experienced managers develop "gut feelings" about aspects of domestic projects that allow them to forecast important variables quite reliably, but they find it far more difficult to make reliable forecasts when the cash flows are being generated in a foreign context.
E) All of the statements above are reasons risk analysis is more important for foreign projects.