The most important aspect of international capital budgeting is:

Question

Quizplus · Accepted Answer

Both the impact of foreign currency on the cash flows and political risk are important aspects that must be considered in international capital budgeting. Failure to properly account for these factors can lead to inaccurate projections of cash flows and overall project profitability. Therefore, option D, (a and b) is the correct answer. Option C is incorrect since the NPV model is applicable to international projects.

The Most Important Aspect of International Capital Budgeting Is