Question: a. Why should a foreign project be evaluated from both a project and a parent viewpoint? b. Which viewpoint, project or parent, gives results closer

a. Why should a foreign project be evaluated from both a project and a parent viewpoint?
b. Which viewpoint, project or parent, gives results closer to the traditional meaning of net present value in capital budgeting?
c. Which viewpoint gives results closer to the effect on consolidated earnings per share?

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a A strong theoretical argument exists in favor of analyzing any foreign project from the viewpoint of the parent Cash flows to the parent are ultimat... View full answer

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