International projects are often undervalued when traditional capital budgeting approaches are used because traditional capital budgeting approaches:

Question

Quizplus · Accepted Answer

Traditional capital budgeting approaches often do not consider the value of real options, which can lead to the undervaluation of international projects. Real options provide flexibility to adapt and make decisions in response to changes in the market or project environment, which is particularly valuable in the uncertain conditions of international projects.

International Projects Are Often Undervalued When Traditional Capital Budgeting Approaches