Re-evaluating an investment decision

Net Present Value (NPV)
Knowledge Center

 

Next Topic

Net Present Value (NPV) > Forum > Re-evaluating an investment decision

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.
 

 
DCF
kssubramanian
 

   

 
the context
mahrukh
 

   

     

Read all responses and join this discussion yourself.
Support your career and personal development with 12manage, the management platform.

    Log in


Special Interest Group Leader

Interested? Sign up for free.


Net Present Value (NPV)
Summary
Forum
Best Practices


    Net Present Value (NPV)
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.2 - Last updated: 15-11-2019. All names of their owners.