Typically,a subsidiary operating in a developing country faces prohibitively high cost of capital which:
A) does not affect the subsidiary's estimate of NPV from a proposed project.
B) lowers the subsidiary's estimate of NPV from a proposed project.
C) increases the subsidiary's estimate of NPV from a proposed project.
D) may or may not affect the subsidiary's estimate of NPV for a proposed project,depending on the discount rate used.
Correct Answer:
Verified
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