When thinking about project returns in going global, which of the following is true?

a)The higher the return the more likely the lower the overall risk

b)Expansion will always reduce the volatility of operating profits

c)The project works best if a strategic fit and capital is available at a reasonable cost

d)The project works best if a strategic fit, capital is available, and it has a net positive value

1.The most important source of funds used by foreign subsidiaries is

a)internally generated funds by the parent

b)short-term external funds

c)accounts receivable management

d)a letter of credit

2.International project analysis and, thus, capital budgeting is distinctive from other company analysis because MNC's

a)look primarily at the global incremental cash flows from the project

b)use the parent's assets to secure the funds

c)merge the project operations with the parent in determining cash flows

d)ignore international tax rates and tax cash flows