In the previous post, I discussed an approach to valuing projects using Discounted Cash Flow (DCF) analysis.  In this post, I will use the DCF technique combined with a fixed scenario to demonstrate a difference in Net Present Value (NPV) resulting from implementing a series of projects on an existing platform vs. replacing the aging platform and fulfilling the same requirements with up-to-date tools.  The horizon of the analysis is 20 years.

But first, read our last article on incorporating too little risk. Continue reading →