Re-evaluating an investment decision
Jacob Question: I am re-evaluating an investment decision from 2004 - - where the initial investment was made. If I wanted to look at the investment today would I need to take the future value of the past CFs and investment into todays dollars and then re run my DCF model. I believe this is the right approach. Thoughts?
Timing with NPV
Isaac Nyamanza Revalue the initial investment to its present value and discount the future cash flows to get NPV as at now. This will give you a better position for decision making.
Think now when you think about decision making.
Muhammad Habeeb As an opinion there is no problem to take past CFs for the re-evaluation, but the decision made in the past was probably valid in that situation. So think now to see whether some "being things remain equal" is still valid or not. See cash flows in the current scenarios for technical, economical, social & legal feasibility.