When a Foreign Project Is Analyzed from the Parent's Point

question 19

Multiple Choice

When a foreign project is analyzed from the parent's point of view, the additional risk that stems from it's "foreign" location is typically measured by ________ or ________.

• A) adjusting the discount rates; adjusting the timing
• B) adjusting the timing; adjusting the cash flows
• C) adjusting the discount rates; adjusting the cash flows
• D) none of the above

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Definitions:

Obligor

A party in a contractual agreement who is legally bound to perform a certain duty or pay a specified amount to another, the obligee.

Prohibited

Actions, practices, or items that are expressly forbidden by law, regulation, or other forms of authority.

Intended Beneficiary

A person or entity that is not a direct party to a contract but is meant to benefit from the contract’s performance.

Expressly Designating

Clearly specifying or identifying something or someone for a particular purpose.