Which of the Following Criteria Involves Maximum Political Risk

question 37

Multiple Choice

Which of the following criteria involves maximum political risk?

• A) International financial standing
• B) Economic growth during previous 5 years
• C) Restrictions imposed on imports
• D) Effectiveness of public administration

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Definitions:

MIRR

The modified internal rate of return; a measure of profitability that adjusts for the cost of capital and project scale.

NPV

Net Present Value; a calculation used to determine the present value of an investment's cash inflows and outflows over a period, assessing its profitability.

WACC

This calculation, known as the Weighted Average Cost of Capital, quantifies a company's cost of capital by proportionately weighting each type of capital it uses.

WACC

The Weighted Average Cost of Capital identifies the cost of a company's capital by weighting each capital category in proportion to its significance.