For Purposes of International Capital Budgeting, It Is NOT Important

question 26

True/False

For purposes of international capital budgeting, it is NOT important to distinguish between parent and total project cash flows.

---

Definitions:

Excess Capacity

A situation in which a company can produce more goods or services than the market demands, often leading to idle resources or reduced production rates.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Cycle Inventory

Inventory that is held to manage the normal fluctuation of production or supply and demand, rotating through cycles of replenishment.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring product availability.