Which of the following statements regarding international projects is FALSE?
A) Interest rates and costs of capital will likely be different in the foreign country as a result of the macroeconomic environment.
B) The project will most likely generate foreign currency cash flows, although the managers and shareholders care about the foreign currency value of the project.
C) Under internationally integrated capital markets, the value of an investment does not depend on the currency we use in the analysis.
D) The firm will probably face a different tax rate in the foreign country and will be subject to both foreign and domestic tax codes.
Answer: B
You might also like to view...
Net income + Expenses = Revenues
Indicate whether the statement is true or false
In "A Question of Ethics," American Airlines handled Alec Baldwin's angry tweet by ________
A) responding with their own version of events B) ignoring it C) using dissonance theory D) taking away his phone
Figure 18-2Consider Figure 18-2 above. C refers to which of the following website design elements?
A. content B. commerce C. customization D. connection E. context
Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat persons afflicted with AIDS. The firm charges each patient $6,500 annually, more than many AIDS patients can afford. This is an example of the manufacturer adhering to its
A. cause marketing strategy. B. utopian responsibility. C. moral idealism. D. profit responsibility. E. social responsibility.