For purposes of international capital budgeting, parent cash flows often depend on the form of financing. Thus, we cannot clearly separate cash flows from financing decisions, as we can in domestic capital budgeting.

Question

Quizplus · Accepted Answer

International capital budgeting involves factors such as exchange rates and different tax laws that impact the cash flows and financing decisions of a parent company, making it difficult to separate the two.

For Purposes of International Capital Budgeting, Parent Cash Flows Often