The internal rate of return (IRR) is generally considered inferior to the net present value (NPV) as a tool for evaluating and ranking projects, despite its inherently useful comparability to the cost of capital and the return of other investment opportunities. We introduce the \selective IRR," a return criterion which, as a selection of an extended set of possible IRRs, is NPV-consistent. The ...

Real options analysis seeks to value flexibility in investment opportunities – both the flexibility offered to management once the investment is undertaken, and the flexibility of delaying the investment through time. The real options approach contrasts with the standard approach to investment decision making, the net present value (NPV) approach, which assumes the investment opportunity is a n...

In this paper, we present a methodology for the grassroots design and/or retrofit of water utilization systems using mathematical optimization to maximize net present value (NPV) and/or return of investment (ROI) insteadofminimizing freshwater consumption. The examples show that the solutionswhere savings and/or profit are maximized can be different from those where freshwater is minimized. The...

nowadays one of the most important energy sources is natural gas. by depletion of oil reservoirs in the world, natural gasâ will emerge as the future energy source for human life. one of the major concerns of gas suppliers is being able to supply this source of energy the entire year. this concern intensifies during more consuming seasons of the year when the demand for natural gas increases, r...

We study the unconstrained project scheduling problem with discounted cash flows where the net cash flows are assumed to be linear dependent on the completion times of the corresponding activities. The objective is to schedule the activities in order to maximize the net present value (npv) subject to the precedence constraints and a fixed deadline. We present an efficient enumeration algorithm ...