Question 1. Besides the rate of return, what additional factors should a firm consider in its capital expenditure decisions for its international subsidiaries and JVs?
Question 2. Based on the current borrowing rates, why would (or wouldn't) a firm want to invest in international capital projects today? In today's economic environment, would one expect the firm's discount rate to be higher, lower or the same as it was three years ago and why?
Question 3. What is meant by capital rationing? Why is capital rationing an important concept in business finance? In particular, what techniques would you use to assess capital projects under capital rationing? Which projects would you invest in and why?