Posted: January 19th, 2022
The ___________ represents the probability that governments and corporationsmay default on their foreign currency debt obligations.
a. Political riskb. Country riskc. Sovereign risk
2.In sensitivity analysis of foreign projects what matters is the ___________ cash flows generated by the project before you can use different scenarios.
a. incrementalb. base-casec. parent
3.A foreign project that is _____ when valued on its own can be ________ from the parent firm’s standpoint.
a. unprofitable, profitable
b.positive NPV, negative NPV
4.The relevant cash flows to use in foreign project valuation, when capital markets are segmented, are
a.incremental worldwide project cash flows
b.cashflows discounted by interest rates in the respective countries
c.total worldwide cash flows generated by the project
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