2a. How does forecasting cash

2a. How does forecasting cash flows for a multinational projectdiffer from forecasting cash flows for a US based project? b.Describe one way the required return for the project located in aforeign country can be determined if the required return for asimilar project located in the US is known. c. When determining therequired return for a capital budgeting project located in aforeign country, why does it matter whether the capital market inthat foreign country is integrated with the world market or issegmented? How does the required return in a segmented marketdiffer from that in an integrated market?


A.      Forecasting cash flows is one of the primary sources of measure ofprofitability. Projects that run in multiple nations have differentways of forecasting cash flows than America based projects as themultinationals have to consider many things:

1. the state of economy of all the different countries in whichit operates like stage of business cycle at with the economy of thecountry currently is , interest rates, political situation andstability, public trends .etc.

2. The relations between the host country and the mother countrythat include both financial and non-financial aspects

   Financial being the exchange rates i.e. the priceat which the foreign currency is available in terms of localcurrency and vice versa. And,

Non-financial majorly being the attitude of the local peopletoward the home country

B. Two project one us based and one based inforeign country can have similar required rate of returns

  • when the stage andthe status of the economy of the host country is similar to theUS

Take for example (per say) Germany and US. Both are developednations and are major drivers of the world economy thus when onecountry experiences a recession or an expansion it is very likelythat the other country is already or will be experiencing thesame.

This interdependence/relation between two similar countries willresult in the two have similar if not same required rate of return.

C.   No country alone has the abilityto affect the world market all by itself. The world market alwayshas some sort of impact on every market be it local or foreign (forthe multinationals). This impact cannot be neglected whilecalculating anything. Thus the world market is integrated with theforeign market. To nullify this effect of world market on theforeign market the multinationals sometimes segregate the worldmarket from the foreign market.

D. the required return in a segmented marketdiffers from that in an integrated market as it only includes therate of return required solely in the foreign country. Requiredrate of return is the measurement of risk, which will differ fromcountry to country.thus will be different from when a particularcountry (foreign, segregated) from world market (as awhole/integrated)

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes