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Re-evaluating an investment decision

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Net Present Value (NPV)
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43
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?
 

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0
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.

 
0
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.

 
0
kssubramanian, india
 

DCF

The relevant things are only to be taken. The present value of the investment has to be established ... Sign up

 
0
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 ana... Sign up

 
0
mahrukh, pakistan
 

the context

For the sake of decision making ignore all past expenditure and for the sake of re-evaluation,contex... Sign up

 
0
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... Sign up

 

More on Net Present Value (NPV):
Summary
Discussion Topics
👀Re-evaluating an investment decision
topic Operating Cash Flows
topic Does the Net Present Value (NPV) calculation uses cash inflows or profits?
topic Choosing between Investments Using a Comparison of NPVs
topic More Complex NPV Comparison: Interrelated Projects
topic NPV of $1 Million for a Project Means What
topic WHEN to Invest? Investing at the Right Moment...
topic Calculating NPV with Missing Data
topic Example of Net Present Calculation
topic NPV of Partial Payments
topic How do you Calculate NPV when Initial Investments are Unknown?
topic Missed Interest in NPV
topic NPV assumes Certainty of Cash Flows
topic Calculating Cost per Unit if Zero NPV without any Operating Costs Information
topic Calculating NPV for a Project
topic NPV Cost Avoidance and Savings
topic NPV for Leased Equipment versus Purchased Equipment
topic NPV with a Missing Cash Flow Figure
🔥 NPV with Only Costs & IRR
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More on Net Present Value (NPV):
Summary
Discussion Topics
👀Re-evaluating an investment decision
topic Operating Cash Flows
topic Does the Net Present Value (NPV) calculation uses cash inflows or profits?
topic Choosing between Investments Using a Comparison of NPVs
topic More Complex NPV Comparison: Interrelated Projects
topic NPV of $1 Million for a Project Means What
topic WHEN to Invest? Investing at the Right Moment...
topic Calculating NPV with Missing Data
topic Example of Net Present Calculation
topic NPV of Partial Payments
topic How do you Calculate NPV when Initial Investments are Unknown?
topic Missed Interest in NPV
topic NPV assumes Certainty of Cash Flows
topic Calculating Cost per Unit if Zero NPV without any Operating Costs Information
topic Calculating NPV for a Project
topic NPV Cost Avoidance and Savings
topic NPV for Leased Equipment versus Purchased Equipment
topic NPV with a Missing Cash Flow Figure
🔥 NPV with Only Costs & IRR
Special Interest Group

SIG Leader

Do you know a lot about Net Present Value (NPV)? Become our SIG Leader

Knowledge Center

Net Present Value (NPV)
Knowledge Center



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