FINA 471 Lecture 4: FINA 471 - NOTE CH 14
13 Feb 2017
School
Department
Course
Professor
Document Summary
Capital budgeting for a foreign/domestic project uses the same theoretical framework, the basic steps are: I0 cfs salvage value discount rate criteria: npv / irr. The results may vary with the perspective taken because the net after-tax cash inflows to the parent can differ substantially from those to the subsidiary. A pare(cid:374)t"s perspective is appropriate when evaluating a project, since any. Exchange rate movements project that can create a positive net present value for the parent should e(cid:374)ha(cid:374)ce the fir(cid:373)"s value. However, one exception to this rule occurs when the foreign subsidiary is not wholly owned by the parent. Consumer demand over time product price over time. Fina 471 international finance management - lecture # 4 chapter 14 : Multinational capital budgeting & country risk analysis: simulation method: repeating the analysis many times using input values randomly drawn from their respective probability distributions.
