Which of the following would most likely cause a company to terminate a project
ID: 1175894 • Letter: W
Question
Which of the following would most likely cause a company to terminate a project in a foreign country. interest rates have declined The MNC's cost of capital has decreased none of the options listed ?exchange rate projections have changed from a depreciation to an appreciation of the foreign currency. the host government has increased its tax rates substantially
Which of the following would most likely cause a company to terminate a project in a foreign country. interest rates have declined The MNC's cost of capital has decreased none of the options listed ?exchange rate projections have changed from a depreciation to an appreciation of the foreign currency. the host government has increased its tax rates substantially
Which of the following would most likely cause a company to terminate a project in a foreign country. interest rates have declined The MNC's cost of capital has decreased none of the options listed ?exchange rate projections have changed from a depreciation to an appreciation of the foreign currency. the host government has increased its tax rates substantially
Explanation / Answer
Correct option is > the host government has increased its tax rates substantially
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Increase in tax rates directly impact on net cash flows and substantial increase would force to terminate the project in respective foreign country.