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Assume that a manager has conducted a capital budgeting analysis of a foreign project that is exposed to potential losses due to the political

 

Assume that a manager has conducted a capital budgeting analysis of a foreign project that is exposed to potential losses due to the political risk of expropriation. In addition, assume that the project is positive NPV both with and without the firm insuring the project against this political risk. Agency costs mean that the manager is more likely to leave the project uninsured (...even if the project with insurance has a more-positive of the two NPVS). Select one: O True False

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