Which of the following is NOT a reason why capital budgeting for a foreign project is more complicated than a domestic project?
A) Cash flows from the foreign project have to be converted into the domestic currency.
B) The foreign project can be affected by political instability in foreign country.
C) The foreign project involves larger amount of working capital than the domestic project.
D) The foreign project can be affected by different foreign taxes and regulations.

Question

Quizplus · Accepted Answer

The amount of working capital required for a project is not a major factor in determining the complexity of capital budgeting for foreign projects. The other options listed are valid reasons why capital budgeting for foreign projects is more complicated than domestic projects.

Which of the Following Is NOT a Reason Why Capital