contestada

Some U.S. multinationals add a premium percentage for risk to the discount rate when evaluating potential foreign investments. Critics argue that this practice
Multiple Choice
- heavily penalizes distant cash flows.
- fails to recognize early cash flows.
- penalizes early cash flows too heavily.
- fails to penalize early cash flows.

Respuesta :

Some U.S. multinationals add a premium percentage for risk to the discount rate when evaluating potential foreign investments heavily penalizes distant cash flows.

Foreign funding refers to the investment in home organizations and property of any other country by using a foreign investor. large multinational agencies will seek new opportunities for financial increase by using starting branches and expanding their investments in different nations.

FDI creates new jobs and greater possibilities as buyers construct new companies in overseas nations. this will cause an boom in profits and mor purchasing strength to locals, which in flip results in an average boost in targetted economies.

A big Australian mining agency acquires a smaller Angolan one for diversification. All are examples of overseas direct investment where a business selection is made to by some means take a stake or interest in a employer with the aid of an investor positioned out of doors its borders.

Learn more about foreign investments here

https://brainly.com/question/14582473

#SPJ4