Title :
The decision analysis for project investment combining exposure preference and benefit pursuing
Author :
Jinlou, Zhao ; Lean, Yu
Author_Institution :
Sch. of Econ. & Manage., Harbin Eng. Univ., China
Abstract :
In project investment management, there is a difference for people between exposure preference and benefit pursuing. A great many investors hope to gain the highest benefit under the condition of steady exposure or to make the lowest exposure under the circumstance of steady benefit. However, the existing decision analysis processes of project investment, such as net present value process and internal rate of return process, only analyze project feasibility from one side or one angle of one side. These faults don´t combine exposure preference with benefit pursuing to analyze a project. On the basis of these faults, the thesis creates an optimal model of project investment with two sides using differential process from the view of economy control theory. Moreover, the optimal model successfully solves the paradox relationship of exposure and benefit in the project investment decision. At the same time, the thesis verifies sensibility and feasibility of the process by calculating and analyzing of true examples
Keywords :
decision theory; economics; investment; project management; research and development management; benefit pursuing; decision analysis processes; economy control theory; exposure preference; investors; project investment decision; project investment decision analysis; project investment management; Control theory; Engineering management; Investments; Project management; Risk analysis; Risk management; Time factors; Uncertainty;
Conference_Titel :
Management of Innovation and Technology, 2000. ICMIT 2000. Proceedings of the 2000 IEEE International Conference on
Print_ISBN :
0-7803-6652-2
DOI :
10.1109/ICMIT.2000.917275