Discussion

"International Capital Budgeting" Please respond to the following:

• Examine the conditions under which the capital expenditure of a foreign subsidiary might have a positive net present value (NPV) in total currency terms but be unprofitable from the parent firm's perspective. Create a (very) brief scenario that illustrates the conditions.

• Analyze the adjusted present value (APV) methodology and make at least one recommendation for improvement. Explain your rationale.

"Multinational Cash Management" Please respond to the following:

• Create 2 to 3 best practices that any multinational corporation could apply to multinational cash management.

• Discuss the pros and cons of a multinational corporation having a centralized cash manager handle all the investment and borrowing for all affiliates of the multinational corporation versus each affiliate having a local manager who performs the cash management activities of the affiliate.