Your author suggests that multinational capital budgeting is a straightforward application of the NPV model with one twist: we can do the analysis in either domestic currency or foreign currency.

Question

Quizplus · Accepted Answer

Multinational capital budgeting indeed involves applying the NPV (Net Present Value) model, and it can be conducted in either the domestic or the foreign currency. The primary twist is accounting for the complexities of exchange rates, political risks, and different tax regimes, but the core analysis can be performed in any currency, adjusting for these factors.

Your Author Suggests That Multinational Capital Budgeting Is a Straightforward