Providing an example of at least one project that may have

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Questions: 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.

  • 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.

 

Reference no: EM133378595

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