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Author Question: What additional complexities arise when multinational corporations consider capital projects on a ... (Read 41 times)

cdr_15

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on: Jul 1, 2018
What additional complexities arise when multinational corporations consider capital projects on a global basis?
 
  What will be an ideal response?

Question 2

Typically, transfer pricing audits by the IRS are concentrated in the case of
 
  A) tangible goods.
  B) intangible property transactions.
  C) services.
  D) inputs.


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Natalie4ever

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Reply #1 on: Jul 1, 2018
Answer to Question 1

Considerations must be given to the impact on projected cash flows from differences in tax laws and tax rates, exchange rate controls and changes, limitations on repatriation of profits, tariffs and quotas on imported products, and special licensing fees. In addition, rates used to discount cash flows back to present values must be adjusted for differences in rates of inflation and taxes, and risks associated with expropriation of assets and political-social instability.

Answer to Question 2

A


cdr_15

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

kilada

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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