Which of the Following Is Unique to Foreign Project Assessment

question 38

Multiple Choice

Which of the following is unique to foreign project assessment in the capital budgeting decision?

• A) Project cash flows must be determined.
• B) Parent cash flows and project cash flows are the same.
• C) Local tax issues affect the determination of free cash flows and the remittance of earnings.
• D) Inflation is not an issue, because companies use the same inflation rate in both the domestic and international setting in order to make the analysis more comparative.

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