Provides a basic technical review of the valuation methods used to assess cross-border investments. Explains discounting the free cash flows at a weighted average cost of capital, the use of adjusted present value, and the importance of considering real options. Special concerns such as foreign exchange risk, country risk, etc. are also discussed.

Provides a basic technical review of the valuation methods used to assess cross-border investments. Explains discounting the free cash flows at a weighted average cost of capital, the use of adjusted present value, and the importance of considering real options. Special concerns such as foreign exchange risk, country risk, etc. are also discussed.
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from
W. Carl Kester,
Julia Morley
24 pages.
Release date: 06 February, 1992. Prod #: 292084-PDF-ENG
Note on Cross-Border Valuation HBR case solution