"International Capital Budgeting" Please respond to the following:
Question 1: Examine the conditions under which the capital expenditure of a foreign subsidiary might have a positive net present value (NPV) in total currency terms but be unprofitable from the parent firm's perspective. Create a (very) brief scenario that illustrates the conditions.
Question 2: Analyze the adjusted present value (APV) methodology and make at least one recommendation for improvement. Explain your rationale.