Would the change in uncertainty increase or decrease

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Reference no: EM131928039

Innovative Industries (II) is a based in the United States. Several years ago, II established a subsidiary in Argentina and as a consequence II has direct foreign investment in Argentina.

Recently, political conditions have changed in Argentina and, as a result, there is more uncertainty in the Argentinian market.

Cash flow expectations have not changed despite the increase in uncertainty.

Would the change in uncertainty increase, decrease or have no effect on the valuation of II? Briefly Explain.

Reference no: EM131928039

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