Topic 2 - Multinational Capital Budgeting: What capital budgeting framework is most typically used for analyzing foreign capital expenditures? Discuss the difference between performing the capital budgeting analysis from the parent firm's perspective as opposed to the subsidiary's perspective. Provide reasons why the parent's viewpoint is superior to the local viewpoint. Explain how political risk and exchange rate risk increase the uncertainty of international projects for the purpose of capital budgeting. Discuss potential approaches to incorporating political risk into capital budgeting models