a. How does forecasting cash flows for a multinational project differ from forecasting cash flows for a US based project?
b. Describe one way the required return for the project located in a foreign country can be determined if the required return for a similar project located in the US is known.
c. When determining the required return for a capital budgeting project located in a foreign country, why does it matter whether the capital market in that foreign country is integrated with the world market or is segmented? How does the required return in a segmented market differ from that in an integrated market?