1|Page
IBUS 401 EXAM 3 2024/2025 EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS | ACCURATE SOLUTIONS | GET IT 100%
CORRECT!! | ALREADY GRADED A
Country risk analysis is important because it:
- can be used by MNCs as a screening divid etc avoid countries
with excessive risk
- can be used by MNCs to monitor countries where the MNC is
presently engaged in international business
- can be used to improve the analysis used to make long-term
investing or financing decision - answers-all of the above
Perhaps the most appropriate method for incorporating forms of
country risk in a capital budgeting analysis is to estimate how the
______ would be affected by each form of risk
- discount rate
- cash flows
- opportunity cost
- none of the above - answers-cash flows
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Everything else being equal, the ______ the depreciation
expense is in a given year, the ________ a foreign project's NPV
will be.
- higher; lower
- higher; higher
- lower; higher
- none of the above - answers-higher; higher
The _____ an MNC, the _____ its cost of capital is likely to be.
- larger; higher
- larger; lower
- smaller; lower
- A and C - answers-larger; lower
In general, the ____ the cost of capital, the _____ the NPV of a
project that is evaluated with this cost of capital
- higher; higher
- lower; lower
- higher; lower
IBUS 401 EXAM 3 2024/2025 EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS | ACCURATE SOLUTIONS | GET IT 100%
CORRECT!! | ALREADY GRADED A
Country risk analysis is important because it:
- can be used by MNCs as a screening divid etc avoid countries
with excessive risk
- can be used by MNCs to monitor countries where the MNC is
presently engaged in international business
- can be used to improve the analysis used to make long-term
investing or financing decision - answers-all of the above
Perhaps the most appropriate method for incorporating forms of
country risk in a capital budgeting analysis is to estimate how the
______ would be affected by each form of risk
- discount rate
- cash flows
- opportunity cost
- none of the above - answers-cash flows
, 2|Page
Everything else being equal, the ______ the depreciation
expense is in a given year, the ________ a foreign project's NPV
will be.
- higher; lower
- higher; higher
- lower; higher
- none of the above - answers-higher; higher
The _____ an MNC, the _____ its cost of capital is likely to be.
- larger; higher
- larger; lower
- smaller; lower
- A and C - answers-larger; lower
In general, the ____ the cost of capital, the _____ the NPV of a
project that is evaluated with this cost of capital
- higher; higher
- lower; lower
- higher; lower
