The feasibility of a multinational project from the parent's perspective is dependent not on the subsidiary cash flows but on the cash flows that it ultimately receives.

Question

Quizplus · Accepted Answer

The parent company is ultimately concerned with the cash flows that it receives, regardless of whether they come from the subsidiary or other sources. The viability of the project is therefore dependent on those cash flows.

The Feasibility of a Multinational Project from the Parent's Perspective