A Major Difference Between Capital Budgeting for Domestic Operations and Foreign

Multiple Choice

A major difference between capital budgeting for domestic operations and foreign operations is that:

A) cash flow estimation is easier (less complex) for foreign operations.
B) repatriation of earnings does not occur in foreign operations of multinational firms that are headquartered in the United States.
C) estimating cash flows generated from foreign operations is more complex due to fluctuating exchange rates.
D) foreign operations are not taxed by both the home country and the host country.
E) foreign operations rarely are not as risky as domestic operations.