When dealing with international capital budgeting projects, the value of the project is NOT sensitive to the firm repatriating dividends to its parent.

Question

Quizplus · Accepted Answer

The value of the project is sensitive to the firm repatriating dividends to its parent as it affects the cash flows of the project and the overall return on investment. Repatriating dividends could also incur additional taxes and costs which affects the profitability of the project.

When Dealing with International Capital Budgeting Projects, the Value of the Project