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    Multinational Business Finance
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    Exam 18: Multinational Capital Budgeting and Cross-Border Acquisitions
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    A Criticism of Adjusting the Discount Rate to Account for Political
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A Criticism of Adjusting the Discount Rate to Account for Political

Question 40

Question 40

True/False

A criticism of adjusting the discount rate to account for political risk is that adjusting the discount rate for political risk penalizes early cash flows too heavily while not penalizing distant cash flows enough.

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