One of the Differences Between Capital Budgeting for Domestic and Foreign

question 10

Multiple Choice

One of the differences between capital budgeting for domestic and foreign operations is that the:

• A) cash flow estimation is simple for foreign operations.
• B) repatriation of earnings does not occur for foreign operations.
• C) cash flows for foreign operations are subject to future exchange rate changes.
• D) foreign operations are free from taxes imposed by home-country and host-country.
• E) foreign operations are always less riskier than domestic operations.

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Definitions:

Customers

People or organizations that buy products or services from a company.

Rate

A measure of the speed at which something happens or is processed, often expressed as a unit per time.

Minute

A unit of time equal to 60 seconds or 1/60th of an hour, commonly used to measure the duration of time.

Discrete Variables

Variables in statistical analysis that assume distinct or separate values, often counted in whole numbers.