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

The parent's perspective would focus on the cash flows that ultimately go to the parent, and the initial outlay made by the parent. This is because the parent is the primary investor and seeks to maximize returns on their investment.

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