Discussing finance details of foreign project

Reference no: EM1344810

Discuss the following two question:

1. A foreign project that is profitable when valued on its own will always be profitable from the parent firm's standpoint. True or false? Explain.

2. What factors should be considered in deciding whether the cost of capital for a foreign affiliate should be higher, lower, or the same as the cost of capital for a comparable domestic operation?

Reference no: EM1344810

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