Detailed Answer
Answer (D) is correct. The cost of capital is typically higher for foreign projects for a variety of reasons, including exchange-rate risk, political risk, and limitations on sources of financing that often require a certain percentage of domestic ownership. Trigger pricing is not a cause. Trigger pricing is a means of managing exchange-rate risk by supplying foreign funds at an indexed price, but with an option to convert to a futures-based fixed price when a specified basis differential exists between the two prices.