Question
Holding other factors constant, an international project's NPV is positively related to consumer demand and to the project's salvage value. The recent withdrawals and shutting
Holding other factors constant, an international project's NPV is positively related to consumer demand and to the project's salvage value.
The recent withdrawals and shutting down of business in Russia of many MNCs are an example of country risk and they could mitigate this risk with having more strings attached to the host country such as borrowing from Russian banks, employing more Russian workers, etc.
Regardless of the probability of each scenario of future exchange rates, as long as one of the scenarios results in a negative net present value (NPV), a project should not be accepted.
True or false statments with a few sentences for explaination
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