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?
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Isaac Nyamanza, Zimbabwe
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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.
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Muhammad Habeeb, Pakistan
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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.
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kssubramanian, india
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DCF
The relevant things are only to be taken. The present value of the investment has to be established ... Sign up
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Abubakar Umar, Nigeria
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Re-evaluating an Investment Decision
It is better to consider the past cash flows up to 2004 and adjust other variables to begin your ana... Sign up
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mahrukh, pakistan
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the context
For the sake of decision making ignore all past expenditure and for the sake of re-evaluation,contex... Sign up
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mac, Uganda
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Base on the past
I really think thats a great idea, you've got to take into consideration how things were in the past... Sign up
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