Question

The ____ the MNC's cost of capital, the ____ will be a project's net present value for its proposed project with a given set of expected cash flows. a. lower; higher b. higher; higher c. lower; lower d. none of the above 10 points

Answer 1

Answer:

a. lower; higher

Explanation:

• The financial theory explains that the multinational corporations should have a cost of capital and has a higher leverage level as compared to the domestic corporations and the have aspects of the risk and thus the lower the cost of the capital the higher will be the company's project net present values for the proposed product.