An international investment opportunity should be rejected if

Question

Quizplus · Accepted Answer

The NPV of the project being positive indicates that the project will generate a positive return, but if the NPV of the parental viewpoint is negative, it means that the project will not generate value for the parent company, and hence, the investment opportunity should be rejected. Option A only compares the project's NPV with the parent viewpoint NPV and does not take into account the sign of the NPV. Option B specifies a minimum IRR required for the project, which may not be the same for all investment opportunities. Therefore, option C is the correct choice.

An International Investment Opportunity Should Be Rejected If