Question: Describe the additional complications facing an MNC compared with a domestic corporation when it is evaluating a capital budgeting project. Why should an MNC's capital

Describe the additional complications facing an MNC compared with a domestic corporation when it is evaluating a capital budgeting project. Why should an MNC's capital budgeting decision be based on the parent's results rather than those of the subsidiary? Is an MNC generally faced with incurring double taxation on its profits in the subsidiary's country? Why or why not?

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