Which of the following statements about FDI and international investment appraisal is/are correct? 1. Multinational companies should worry more about the impact of translation risk rather than transaction risk in terms of their FDls and exchange rate volatility 2. Reduced exports due to sales from an overseas subsidiary are a relevant cash flow when appraising foreign direct investment 3. Financing FDls using local borrows will potentially reduce political risk O A. All three statements are correct O B.(2) and (3) are correct O C. (2) is correct O D. (1) is correct O E. (1) and (3) are correct