Problem 1: In a foreign project, there are specific risks associated with the location of the project, for example in a country with an unstable political or economic system.
How can one modify the cash flow calculations to account for increased risks? 200 words
Problem 2: In using capital budgeting to evaluate a potential foreign project, is there a distinction between the cash flows to the project and the cash flows to the parent company? If yes, what situation will cause such a difference between the two cash flows? 200 words