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A Sequential Analysis of Large‐Scale Investment Projects
Author(s) -
FLAVELL R. B.,
SALKIN G. R.
Publication year - 1974
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1974.tb00851.x
Subject(s) - variety (cybernetics) , construct (python library) , investment (military) , computer science , scale (ratio) , process (computing) , simple (philosophy) , operations research , capital (architecture) , capital budgeting , capital investment , management science , risk analysis (engineering) , data science , operations management , business , economics , finance , artificial intelligence , engineering , project appraisal , political science , philosophy , physics , epistemology , quantum mechanics , politics , law , programming language , operating system , archaeology , history
Typically the evaluation of a large capital project may take a number of years, during which time information is being continually received from a variety of sources. This paper describes an analysis procedure that recognizes the sequential nature of the information and uses it to construct a simple decision model as an aid to the evaluation. The application of this method to a large mining project is described with the conclusion that the evaluation process could have been reduced by a third.