International capital budgeting will require that managers:

Question

Quizplus · Accepted Answer

Managers must recognize all of the risks and rewards associated with international capital budgeting. They must also account for any added risks by increasing the discount rate. Additionally, they must either convert all incremental cash flows to the domestic currency or convert the domestic discount rate to an equivalent rate in the foreign country. Therefore, all of the options listed are required for effective international capital budgeting.

International Capital Budgeting Will Require That Managers