A U.S.-based company is establishing a project in a politically unstable country. It is considering two possible sources of financing. Either the parent could provide most of the financing, or the subsidiary could be supported by local loans from banks in that country. Which financing alternative is more appropriate to protect the subsidiary (explain your answer)? What would happen to the required rate of return on the project in question ? That is, what impact does political instability have on the discount rate used to compute the NPV of the project (explain)?