An MNC will always use the same required rate of return in the valuation of foreign projects, as it would for its domestic projects.

Question

Quizplus · Accepted Answer

An MNC's required rate of return for foreign projects may differ from that for domestic projects due to factors such as differences in risk levels, exchange rate fluctuations, and political and economic conditions in the foreign country. Therefore, an MNC may use a different required rate of return in the valuation of its foreign projects.

An MNC Will Always Use the Same Required Rate of Return