Assignment:
Most organizations are in the business of making money. This can be done through providing services and products or through investments. However, how an organization determines which investments are the right ones is very important. One method of doing this is capital budgeting. According to Costa in his article, "An approximate solution approach for a scenario-based capital budgeting model," capital budgeting or investment appraisal is concerned with the selection of a portfolio of projects for investment under budget constraints and aiming to a maximal return value. Please read the article by Costa and respond to the following questions.
Review the Link:
https://www.academia.edu/415007/Capital_Rationing_Problems_under_Uncertainty_A_Probabilistically_Constrained_Approach._
Accepted_to_Computational_Optimization_and_Applications
- Discuss the concept of capital budgeting? What is it? What are the advantages and disadvantages of capital budgeting? What does the author say about DCF and IRR? What model does he suggest instead? Briefly discuss the heuristic procedure for ?nding feasible solutions for a dynamic capital budget model (M1). Briefly discuss the model (M1) and the technical dif?culties for solving it.
- Lastly, discuss the new model (M2) proposed by the authors. Why is this the better model? How do you see it being used in health care?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format.