Which one of the following is advised when evaluating a capital project in a foreign country if you are concerned about political risk?
A) The project should be abandoned until this risk is eliminated.
B) The project's cost of capital rate should be decreased to offset the perceived risk.
C) The domestic discount rate should be increased to account for the added risk.
D)The project cash flows should be decreased to account for the political risk.

Question

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The Answer of Which one of the following is advised when evaluating a capital project in a foreign country if you are concerned about political risk?
A) The project should be abandoned until this risk is eliminated.
B) The project's cost of capital rate should be decreased to offset the perceived risk.
C) The domestic discount rate should be increased to account for the added risk.
D)The project cash flows should be decreased to account for the political risk.

Which One of the Following Is Advised When Evaluating a Capital