The valuation of a proposed international divestiture can be determined by comparing the present value of the cash flows if the project is continued to the proceeds that would be received (after taxes) if the project is divested.

Question

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This statement is true as it is a common approach to evaluate the viability of a proposed international divestiture. By comparing the present value of cash flows from continuing the project with the proceeds from divesting the project, the decision-makers can assess which option generates more value for the company.

The Valuation of a Proposed International Divestiture Can Be Determined