The Resource-constrained Project Scheduling Problem (Rcpsp), in which a schedule must obey resource constraints and precedence constraints between pairs of activities, is one of the most studied scheduling problems. An important variation of this problem (RcpspDc) is to find a schedule which maximises the net present value (discounted cash flow). Large industrial applications can require thousa...

In the current contribution, we consider the present value of a series of fixed cash flows under stochastic interest rates. In order to model these interest rates, we don’t use the common lognormal model, but stable laws, which better fit in with reality. For this present value, we want to derive a result about the distribution function. However, due to the dependencies between successive disco...

We show that the recursive computation scheme of present value (PV), which is used implicitly in FAS 91 accounting standard, is numerically unstable and that the absolute error increases exponentially for positive discount rates. We show that reversing the direction of calculations in the recurrence equation yields a robust PV computation routine.

As a general branch of project scheduling problems, resource investment problem (RIP) considers resource availabilities as decision variables to determine a level of employed resources minimizing the costs of the project. In addition to costs (cash outflows), researchers in the later extensions of the RIP took payments (cash inflows) received from clients into account and used the net present v...

Although documenting everyday activities may seem trivial, four studies reveal that creating records of the present generates unexpected benefits by allowing future rediscoveries. In Study 1, we used a time-capsule paradigm to show that individuals underestimate the extent to which rediscovering experiences from the past will be curiosity provoking and interesting in the future. In Studies 2 an...

Improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment. In current electricity markets, transmission lines have become assets that need financial instruments for investors who wish to ensure steady long-term returns and to withstand short-term market volatility. The timing and the combination of new transmission investments is key to a...

In this paper we show that fixed-term contracts, which are commonly used to franchise highways, do not allocate demand risk optimally. We characterize the optimal risk-sharing contract and show that it can be implemented with a fairly straightforward mechanism—a least-present-value-of-revenue auction. Instead of bidding on tolls (or franchise lengths), as in the case of fixed-term franchises, i...