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A Swiss MNC considers a 5-year project in Egypt. A possibility exists that the Egyptian government will seize the assets of the Swiss MNC in
A Swiss MNC considers a 5-year project in Egypt. A possibility exists that the Egyptian government will seize the assets of the Swiss MNC in any given year over the life of the project. The probability of this occurring will increase by 3 percentage points every year. How many possible scenarios should the MNC factor into their capital budgeting analysis of this project?
Answer a. 1
b. 2
c. 5
d. 6
e. 9
f. There is not enough information to answer this question.
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