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When an MNC Is Considering Financing a Portion of a Foreign

Question 27

Multiple Choice

When an MNC is considering financing a portion of a foreign project within the foreign country,the best method to account for a foreign project's risk is to:


A) derive net present values based on the WACC.
B) adjust the weighted average cost of capital for the risk differential.
C) derive the net present value of the equity investment.
D) none of the above

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