The discount rate applied to major investments, domestic or cross-border, is consistently one of the most controversial debates within a firm. How would you assess the following statements, ofien heard in corporate finance mectings:

a, "DCF analysis is inherently biased against long-term investments."

b. "Forcign investment projects should always have a discount rate that is above that of the parent company to compensate for the additional cross-border risk."

c. "Why should I invest in a foreign project that is discounted at a \(16 \%\) rate simply because it has a projected NPV greater than a domestic investment that was discounted at only \(12 \%\) ?"

d. "Why should 1-becausc of the latest thinking in porffolio theoryinvest in a foreign project that is discounted at only a \(12 \%\) rate simply because it has a projected NPV greater than a domestic investment that was discounted at a higher rate of \(14 \%\) :"