Incorrect Question 14 0/1 pts Which of the following statement is FALSE? Few capital budgeting at the subsidiary level have the same level of risk as the parent The adjusted present value model extends the net present value model's principal of value additivity approach. When making capital budgeting decisions, a subsidiary should use the discount rate that is specific to the risk of the project that the subsidiary is undertaking in the foreign country rather than the parent's cost of capital. If subsidiaries use firm-level, rather than project-specific, cost of capital to make capital budgeting decisions, over time risky projects with negative investment returns will be accepted. In the APV model, operating cash flows are discounted at subsidiaries' unlevered cost of equity