Question: When determining whether a particular proposed project in a foreign country is feasible:A . a country risk analysis can adequately substitute for a capital budgeting

When determining whether a particular proposed project in a foreign country is feasible:A. a country risk analysis can adequately substitute for a capital budgeting analysis.B. the effect of country risk on exchange rate fluctuations is more important than the effect on cash flows.C. the project with the lowest country risk should be accepted.D. MNCs may evaluate projects by adjusting the discount rate upwards as the country risk increases.E. MNCs should avoid projects that require a large amount of funds at the beginning of the project.

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