Suppose That an American Opens and Operates a Candy Factory

question 8

Multiple Choice

Suppose that an American opens and operates a candy factory in Finland.This is an example of

• A)foreign direct investment.American saving is used to finance Finish investment.
• B)foreign direct investment.American saving is used to finance American investment.
• C)foreign portfolio investment.American saving is used to finance Finish investment.
• D)foreign portfolio investment.American saving is used to finance American investment.

---

Definitions:

Donut Sales

The revenue generated from selling donuts, often used to analyze the business performance of bakeries or eateries.

Net Present Value

A financial metric used to evaluate the profitability of an investment, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Discount Factor(s)

Mathematical factors used in discounted cash flow analysis to calculate the present value of future cash flows, reflecting the time value of money.

Working Capital

The difference between a company's current assets and current liabilities, indicating the financial health and operational efficiency.