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Chapter 17 International Capital Budgeting IN THIS BOOK, we take the view that the fundamental goal of the financial manager is shareholder wealth maxChapter Outline imization. Shareholder wealth.

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Related content

Capital Budgeting - Library of Congress
A catalogue record for this book is available from the British Library. Library of...
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PREFACE
ment, or capital budgeting, decision and (2) the financing decision. In other words...
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Involves substantial spending in capital projects foreign countries, rather than in the home country by the MNC. However, capital budgeting analysis for a foreign project is more complex than the domestic case for various reasons: Capital Budgeting Process.

Estimate and Forecast Future Cash Flows: Future cash flows are what create value for business over time. Capital budgeting enables executives to take a potential project and estimate its future cash flows, which then helps determine if such a project should be accepted.

Domestic capital budgeting involves planning and budgeting for long term investments in the domestic economy or in the country that company is incorporated in. International capital budgeting involves planning and budgeting for long term investments in economies other than the domestic economy of the company.

Payback Period, Net Present Value Method, Internal Rate of Return, and Profitability Index are the methods to carry out capital budgeting.

If a company's capital budget project will involve another country, it will be exposed to international risk. This entails political and exchange-rate risk of the project. If a project is based in a country with an unstable political structure, civil or political unrest could cause the entire investment to be lost.

International capital budgeting involves substantial spending (cap- ital investment) in projects that are located in foreign (host) countries, rather than in the home country of the MNC.

Capital budgeting is important because it creates accountability and measurability. Any business that seeks to invest its resources in a project without understanding the risks and returns involved would be held as irresponsible by its owners or shareholders.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232