Question
In deriving a discount rate to value cash flows originating from a foreign project or investment, what is the preferred method to account for foreign
In deriving a discount rate to value cash flows originating from a foreign project or investment, what is the preferred method to account for foreign political risk?
A. Multiplying the calculated NPV by a factor less than one.
B. Adding a political risk premium to the discount rate.
C. Lowering the expected cash flows.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
