To find the appropriate discount rate for capital budgeting in a multinational setting,we would build it as follows: discount rate = real rate + inflation + risk premium of project,where the risk premium includes political risk.

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The formula for finding the appropriate discount rate for capital budgeting in a multinational setting is as described in the statement. The real rate, inflation, and risk premium of the project are all factors that need to be considered while calculating the discount rate. Additionally, the risk premium should also account for political risk, which can significantly affect the project's success in a multinational setting. Therefore, the statement is true.

To Find the Appropriate Discount Rate for Capital Budgeting in a Multinational