Page 43 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 43 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629International Financial BudgetingThe methods for evaluating international investment and finance opportunities are no different from the methods for assessing local opportunities. The fundamental difference between evaluating international and local opportunities lies in the distinct international factors that influence these opportunities, such as the impact of the exchange rate and political factors.Factors that must be considered in multinational financial budgeting1- The effect of the exchange rate on financial budgetingWhen evaluating international capital or financial budgeting, the impact of exchange rate changes between the home country and the foreign country must be considered.Using NPV criteria, you have two equally valid approaches:1- Change the foreign cash flows into the home country's currencies at the exchange rates that are expected to prevail every year. Find the NPV using the home country%u2019s cost of capital.2- Find the foreign currency NPV using the foreign currency cost of capital. Change the NPV value from the foreign currency to the home country's currency at the exchange rate expected to prevail in the last year.%uf0b7 The two approaches will get approximately the same answer.- Capital Budgeting from the Parent Firm%u2019s Perspective:Example 1:A U.S. MNC is considering an Egyptian opportunity. The size and timing of the after-tax cash flows are (in millions) :EGP%u201345,0000EGP20,0001EGP50,0002EGP30,0003