Why is the multinational capital budgeting process more complex than capital budgeting in a domestic environment?

Question

Quizplus · Accepted Answer

Multinational capital budgeting is more complex because there are additional risks that may affect future cash flows. These risks can include changes in currency exchange rates, political instability, and differences in tax laws and regulations between countries. Additionally, selecting an appropriate discount rate and predicting cash flows are also important factors in both domestic and multinational capital budgeting processes. The payback period is not necessarily shorter in multinational capital budgeting.

Why Is the Multinational Capital Budgeting Process More Complex Than