Which of the Following Is NOT a Reason Why Capital

question 40

Multiple Choice

Which of the following is NOT a reason why capital budgeting for a foreign project is more complicated than a domestic project?

• A) Cash flows from the foreign project have to be converted into the domestic currency.
• B) The foreign project can be affected by political instability in foreign country.
• C) The foreign project involves larger amount of working capital than the domestic project.
• D) The foreign project can be affected by different foreign taxes and regulations.

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