Subsidiary versus Parent Perspective

Input for Multinational Capital BudgetingAn MNC will normally require forecasts of thefinancial characteristics that influence the initialinvestment or cash flows of the project.1.Initial investment - Funds initially invested includewhatever is necessary to start the project and additionalfunds, such as working capital, to support the projectover time.2.Price and consumer demand – Future demand isusually influenced by economic conditions, which areuncertain.© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.