2.

Which of the following statements regarding international projects is FALSE?

a.

In some cases, a countrys risk-free securities are internationally integrated but markets for a specific firms securities are not.

b.

The firm will probably face a different tax rate in the foreign country and will be subject to both foreign and domestic tax codes.

c.

Under segmented capital markets, the value of an investment does not depend on the currency we use in the analysis.

d.

The international project will most likely generate foreign currency cash flows, although the firm cares only about NPV of the project in home currency.