1.) What is the limitation of using point estimates of exchange rates in the cap
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1.) What is the limitation of using point estimates of exchange rates in the capital budgeting analysis? List the various techniques for adjusting risk in multinational capital budgeting. Describe any advantages or disadvantages of each technique. Explain how simulation can be used in multinational capital budgeting. What can it do that other risk adjustment techniques cannot?
What is the limitation of using point estimates of exchange rates in the capital budgeting analysis? List the various techniques for adjusting risk in multinational capital budgeting. Describe any advantages or disadvantages of each technique. Explain how simulation can be used in multinational capital budgeting. What can it do that other risk adjustment techniques cannot?Explanation / Answer
Point estimates of exchange rates lead to a point esti
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