an:01415622
Zbl 0947.91047
Shea, Koon-lam; Tang, Tai-man; Tso, Ping-shu
Optimal investment sequence
EN
Econ. Theory 15, No. 1, 215-219 (2000).
00061301
2000
j
91B28
present value; replication; investment sequence
Summary: The authors investigate the optimal order in which a collection of projects should be taken on if only one project can be done at a time. They associate a number called priority value with each project and show that one should order the projects in decreasing priority values. They also show that this priority value rule is equivalent to the replication rule in the literature. Finally, they compare the rankings given by the priority value rule and the ordinary present value rule.