How do you write a letter to directors advising them whether to accept or reject an...

How do you write a letter to directors advising them whether to accept or reject an investment?

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Answer: Accepting or rejecting an investment proposal, is very tough decision, it takes lot of efforts and analysis.

Writing a letter to directors advising them whether to accept or reject an investment-

To,

The Directors of ABC Corporation,

Wall street, Lower Manhattan,

New York.

Dear Sir,

Subject- Advice related to proposed investment.

Greetings! Accepting or rejecting an investment proposal needs so much analysis, time and money. Where money matters, we should check the profitability and return of an investment. Net present value of the proposed investment is the difference between the present value of cash inflows and present value of cash outflows. A positive NPV that is excess of cash inflows over cash outflows, is good for accepting an investment proposal. Our team has calculated the Net present value of this investment and found that NPV is negative as the investment needs heavy amount initially and expected cash flows are lower, we have also calculated the payback period that is also not motivating to accept the investment proposal, so this investment proposal should not be accepted, taking into consideration the profitability of the investment.

So I request you not to accept the investment proposal to save the company from any loss. Please understand.

Thank You!

With regards

Your sincerely

Mark Jacob

Manager, ABC Corporation

jeff jeffy answered 1 year ago

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