International capital budgeting differs from domestic capital budgeting because (1) cash inflows and outflows occur in a foreign currency, and (2) foreign investments potentially face significant political risk.

Question

Quizplus · Accepted Answer

International capital budgeting involves dealing with foreign currencies and potential political risks, whereas domestic capital budgeting deals with a single currency and typically has lower political risk.

International Capital Budgeting Differs from Domestic Capital Budgeting Because (1)