Describe the additional complications facing an MNC compared with a domestic corporation when it is evaluating a capital budgeting project.

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Describe the additional complications facing an MNC compared with a domestic corporation when it is evaluating a capital budgeting project. Why should an MNCs capital budgeting decision be based on the parents results rather than those of the subsidiary? Is an MNC generally faced with incurring double taxation on its profits in the subsidiarys country? Why or why not?

  1. Describe the additional complications facing an MNC compared with a domestic corporation when it is evaluating a capital budgeting project. There are several variables that must be taken into consideration when we deal with multinational capital budgeting. For example, the inflation rates thats mean that the rates of inflation in the country of the parent corporation and of the subsidiary...

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