If a parent's perspective is used in analyzing a multinational project, the relevant cash flows are the dollars ultimately received by the parent as a result of the project; the relevant initial outlay is the investment by the parent.

Question

Quizplus · Accepted Answer

This is because the parent's perspective focuses on the ultimate impact of the project on the parent's financials, including the cash flows received and the initial investment made.

If a Parent's Perspective Is Used in Analyzing a Multinational