Provides a review of the valuation methods used to assess cross-border investments. Explains discounting the free cash flows at a weighted average cost of capital and the use of adjusted present value. Special concerns such as foreign exchange risk, country risk and international diversification are also discussed. Unlike regard to cross-border valuation, this memorandum contains no discussion of the valuation of real options. A rewritten version of an earlier note.

Provides a review of the valuation methods used to assess cross-border investments. Explains discounting the free cash flows at a weighted average cost of capital and the use of adjusted present value. Special concerns such as foreign exchange risk, country risk and international diversification are also discussed. Unlike regard to cross-border valuation, this memorandum contains no discussion of the valuation of real options. A rewritten version of an earlier note.
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from
Kenneth A. Froot,
W. Carl Kester
21 pages.
Release Date: 19, January 1995. Prod #: 295100-PDF-ENG
Cross-border valuation HBR case solution

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