3. Which of the following is NOT a reason why companies move into international operations? a. To take advantage of lowe
Posted: Tue Nov 16, 2021 8:06 am
3. Which of the following is NOT a reason why companies move
into international operations?
a. To take advantage of lower production costs in regions where
labor costs are relatively low.
b. Because important raw materials are located abroad.
c. To better serve their primary customers.
d. To develop new markets for the firm’s products.
e. To increase their inventory levels.
4. Match the Capital Budgeting Technique with the
appropriate reinvestment rate assumption.
____ Internal Rate of Return
1. Internal Rate of Return
____ Modified Internal Rate of Return
2. Weighted
Average Cost of Capital
____ Net Present Value
3. No
reinvestment rate assumption for this method
____Payback Period
into international operations?
a. To take advantage of lower production costs in regions where
labor costs are relatively low.
b. Because important raw materials are located abroad.
c. To better serve their primary customers.
d. To develop new markets for the firm’s products.
e. To increase their inventory levels.
4. Match the Capital Budgeting Technique with the
appropriate reinvestment rate assumption.
____ Internal Rate of Return
1. Internal Rate of Return
____ Modified Internal Rate of Return
2. Weighted
Average Cost of Capital
____ Net Present Value
3. No
reinvestment rate assumption for this method
____Payback Period