Chapter 16. Capital Budgeting with Country Risk Analysis 2. Incorporating country risk in capital budgeting (20 points) A US MNC in energy is using this capital budgeting model for a 4-year foreign project in Portugal. You should be able to understand what these numbers represent. Here is the generalized model. The model did not capture the potential effects of a few events that happened recently. Considering potential country risks associated with the project, please suggest adjustments to the model. Note. You could ithastrate with some arbitrary numbers but please explain the ratounde behied using them. 3. FDI is considered a priority and the Portuguese Goverament recently launched the development of reaewable enersies (solar and wave), IT, and tourism (20\% tax credit suppert). (5 points) b. The country got re-rauked on bureaucratic and juridical burdens, rated by World Bank Doing Business, from 29 th to 34th out of 190 countries. Still, it is among top countrics for FDI. (5 points) Chapter 16. Capital Budgeting with Country Risk Analysis 2. Incorporating country risk in capital budgeting (20 points) A US MNC in energy is using this capital budgeting model for a 4-year foreign project in Portugal. You should be able to understand what these numbers represent. Here is the generalized model. The model did not capture the potential effects of a few events that happened recently. Considering potential country risks associated with the project, please suggest adjustments to the model. Note. You could ithastrate with some arbitrary numbers but please explain the ratounde behied using them. 3. FDI is considered a priority and the Portuguese Goverament recently launched the development of reaewable enersies (solar and wave), IT, and tourism (20\% tax credit suppert). (5 points) b. The country got re-rauked on bureaucratic and juridical burdens, rated by World Bank Doing Business, from 29 th to 34th out of 190 countries. Still, it is among top countrics for FDI. (5 points)