Briefly Describe the Changes Taking Place in the Attitudes Toward

question 104

Essay

Briefly describe the changes taking place in the attitudes toward FDI in countries across the globe.

---

Definitions:

Cost of Capital

A rephrasing: The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.

NPV

Net Present Value; a calculation used to assess the value of a project or investment by determining the present value of future cash flows.

Certainty Equivalent Factors

Refers to adjustments made to uncertain (risky) cash flows to equate them to certain cash flows, used in investment decision-making.

Risk Adjusted Discount Rate

A rate used in capital budgeting that adjusts for the risk of cash flows, providing a way to account for the riskiness of the project.