ssume the parent of a U$.$S$.-$based MNC plans to completely finance the establishment of its British subsidiary with existing funds from retained earnings from U$.$S$.$ operations. According to the text, the discount rate used in the capital budgeting analysis on this project will be most affected by:

a$.$ the economic conditions in the United Kingdom.

b$.$ the parent's cost of capital.

c$.$ the cost of borrowing funds in the United Kingdom.

d$.$ "the cost of borrowing funds in the United Kingdom" and "the economic conditions in the United Kingdom".