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All of the Following Are Factors Complicating the Capital Budgeting

Question 54

Multiple Choice

All of the following are factors complicating the capital budgeting process for an international business except:


A) a distinction must be made between cash flows to the project and cash flows to the parent company.
B) cash flows to the project and to the parent company will be the same when a host-country government blocks the repatriation of cash flows from a foreign investment.
C) political and economic risks,including foreign exchange risk,can significantly change the value of a foreign investment.
D) the connection between cash flows to the parent and the source of financing must be recognized.

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