The president of a large company was asked why the company was holding onto a large amount of cash, instead of investing the cash. The reply was, "Because we see a lack of available positive NPV projects."

For this question, prepare 3–4 paragraphs as if a new colleague you are mentoring who is not as knowledgeable as you about finance or accounting reads the above statement. Consider:

• Detailing for your colleague what the statement means and why it is important.
• Providing an example of at least one project that may have a negative NPV but be worth doing. For example, perhaps the company is posting monitors all over its office to provide employees weather, traffic, and news.

Answer rating: 100% (QA)

Answer Heres an explanation for your colleague The presidents statement indicates that the company i... View the full answer