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The president of a large company was asked why the companywasholding onto a large amount of cash, instead of investing the cash. The reply was,

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

Consider:

Detailing for your colleague what the statement means andwhy 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.

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