International Finance due 02/17/2015

FOR NYANYA:

DUE:  02/17/2015, Tuesday  18:00

Answers should be complete and concise and should be at least 140 words.

As usual - direct to the point and concise answers are requested. 

Answers should be in the context of foreign exchange markets and/or foreign exchange rates.

QUESTIONS:

What is capital budgeting?

What are the steps in multinational capital budgeting? Differentiate between domestic and multinational capital budgeting?

What is the project versus the parent valuation?

What is a cash flow?

How does foreign exchange risk affect the capital budgeting?

What are the main criteria for capital budgeting valuation?