When an MNC Forms a Foreign Subsidiary and That Subsidiary

When an MNC forms a foreign subsidiary and that subsidiary is eligible for subsidies in the country where it will operate,how is the capital budgeting process for that subsidiary and its project affected?

A) Local subsidies are compensated for in NPV calculations,so no additional consideration needs to be given in the capital budgeting process.
B) Since local subsidies are subject to political risk and can be taken away as easily as they are granted,local subsidies are not considered in the capital budgeting process.
C) When local subsidies are available,the capital budgeting process is often altered to include consideration of the cash flows that will be generated by those subsidies.
D) Local subsidies are generally not available to subsidiaries that will send their profits to the MNC parent,so local subsidies are not considered in the capital budgeting process by MNCs.

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