The NPV of a Foreign Investment Will Be Lower If

question 53

Multiple Choice

The NPV of a foreign investment will be lower if:

• A) not all cash flows are remitted to the parent and unremitted cash flows are reinvested at a rate equal to the domestic cost of capital.
• B) not all cash flows are remitted to the parent and unremitted cash flows are reinvested at a rate less than the domestic cost of capital.
• C) all cash flows are remitted to the parent and are reinvested at a rate equal to the domestic cost of capital.
• D) Remittance rates nor foreign reinvestment rates do not affect the NPV.

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Definitions:

Polymerase Reaction

A laboratory technique used to amplify DNA sequences, commonly known as Polymerase Chain Reaction (PCR).

Nuclear Membrane

The double lipid bilayer membrane which surrounds the genetic material and nucleolus in eukaryotic cells.

Cell Organelle

Specialized subunits within a cell that have specific functions, essential for the cell to operate properly, such as mitochondria and the Golgi apparatus.

Nucleus

The central and most important part of an atom, cell, or object, containing the protons and neutrons in the case of an atom, or genetic material in the case of a cell.