Return25%
The value of multinationality
20%
MNC’s investment opportunity set
Do mestic firm’s cost of capital
15%
10%
5%
MNC’s cost of capital
Do mestic firm’s investment opportunity set
0% 0 100Do mestic firm
200
300
400
500
Multinati onal corporation (MNC)
Capital budget ($ millions)Kirt C. Butler, Multinational Finance, South-Western College Publishing, 3e 1-13