Because before-tax cash flows are necessary for an adequate capital budgeting analysis, international tax effects need not be determined on a proposed foreign project.

Question

Quizplus · Accepted Answer

International tax effects must be considered in a proposed foreign project as they can significantly impact before-tax cash flows and ultimately affect the feasibility of the project. Ignoring these effects can lead to inaccurate capital budgeting analysis.

Because Before-Tax Cash Flows Are Necessary for an Adequate Capital