{"id":33678,"date":"2024-04-15T09:20:11","date_gmt":"2024-04-15T09:20:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33678"},"modified":"2024-04-15T09:20:11","modified_gmt":"2024-04-15T09:20:11","slug":"the-issues-in-international-capital-budgeting-include-1-exchange-rate-risk-2-political-risk-3-geographical-risk-4-parent-vs-project-cash-flow","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-issues-in-international-capital-budgeting-include-1-exchange-rate-risk-2-political-risk-3-geographical-risk-4-parent-vs-project-cash-flow\/","title":{"rendered":"The issues in international capital budgeting include 1. Exchange rate risk 2. Political risk 3. Geographical risk 4. Parent vs project cash flow"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Both 1 and 2&#8243; option2=&#8221;Both 2 and 4&#8243; option3=&#8221;1, 2 and 4&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. 1, 2 and 3.<\/p>\n<p>Exchange rate risk is the risk that the value of a currency will change relative to another currency, which can affect the profitability of an investment. Political risk is the risk that a government will take actions that could harm an investment, such as nationalizing a company or imposing new taxes. Geographical risk is the risk that natural disasters or other events will affect an investment. Parent vs project cash flow is the distinction between cash flow that goes to the parent company and cash flow that stays with the project.<\/p>\n<p>Option A is incorrect because it only includes exchange rate risk and political risk. Option B is incorrect because it only includes political risk and parent vs project cash flow. Option C is incorrect because it only includes exchange rate risk, political risk, and parent vs project cash flow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Both 1 and 2&#8243; option2=&#8221;Both 2 and 4&#8243; option3=&#8221;1, 2 and 4&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"class_list":["post-33678","post","type-post","status-publish","format-standard","hentry","category-business-finance","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The issues in international capital budgeting include 1. Exchange rate risk 2. Political risk 3. Geographical risk 4. 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