Re-evaluating an investment decision

Net Present Value (NPV)
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Best Practices
Jacob, USA

Re-evaluating an investment decision

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?

  Isaac Nyamanza, Zimbabwe
 

Timing with NPV

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.

  Muhammad Habeeb, Pakistan
 

Think now when you think about decision making.

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.

  kssubramanian, india
 

DCF

The relevant things are only to be taken. The present value of the investment has to be established based on its worth t...

  Abubakar Umar, Nigeria
 

Re-evaluating an Investment Decision

It is better to consider the past cash flows up to 2004 and adjust other variables to begin your analysis of future cash...

  mahrukh, pakistan
 

the context

For the sake of decision making ignore all past expenditure and for the sake of re-evaluation,context and the appropriat...

  mac, Uganda
 

Base on the past

I really think thats a great idea, you've got to take into consideration how things were in the past and then establish ...

 

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Net Present Value (NPV)
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