A firm may incorporate a country risk rating into the, Financial Management

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A firm may incorporate a country risk rating into the

A firm may incorporate a country risk rating into the capital budgeting analysis by:

adjusting the NPV upward if the country risk rating has fallen (implying increased risk) below a benchmark level.

adjusting the discount rate upward as the country risk rating decreases (implying increased risk).

A and B

none of the above

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