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4. Expound on how a) Capital intensity of the foreign investment can influence risk and profitability of the project. (real estate versus non real estate,
4. Expound on how
a) Capital intensity of the foreign investment can influence risk and profitability of the project. (real estate versus non real estate, for example.)
b) Adjustment of cash flows in contrast to discount rates occurs.
c) The foreign government guarantees us the revenue of the business in which we invest by purchasing directly from us the product we produce in case we cannot sell them in the market. Discuss our risks. How is the COC affected?
d) Cyclicality of sales and incidence of debt influencing risk of capital budgeting
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