How can a multinational enterprise incorporate its perception of high level of risk into its capital budgeting process?

Question

Quizplus · Accepted Answer

A multinational enterprise can incorporate its perception of high risk by using conservative estimates of cash inflows, liberal estimates of cash outflows, and a high discount rate to account for potential uncertainties and ensure that only projects with sufficiently high returns are accepted.

How Can a Multinational Enterprise Incorporate Its Perception of High