Publication detail

A Comparison of Exact and Heuristic Approaches to Capital Budgeting

ŠEDOVÁ, J. ŠEDA, M.

English title

A Comparison of Exact and Heuristic Approaches to Capital Budgeting

Type

Peer-reviewed article not indexed in WoS or Scopus

Language

en

Original abstract

This paper summarizes and compares approaches to solving the knapsack problem and its known application in capital budgeting. The first approach uses deterministic methods and can be applied to small-size tasks with a single constraint. We can also apply commercial software systems such as the GAMS modelling system. However, because of NP-completeness of the problem, more complex problem instances must be solved by means of heuristic techniques to achieve an approximation of the exact solution in a reasonable amount of time. We show the problem representation and parameter settings for a genetic algorithm framework.

Keywords in English

capital budgeting, knapsack problem, GAMS, heuristic method, genetic algorithm

Released

2009-07-01

ISSN

2073-0519

Volume

1

Number

3

Pages from–to

212–216

Pages count

5

BIBTEX


@article{BUT47076,
  author="Jindřiška {Šedová} and Miloš {Šeda}",
  title="A Comparison of Exact and Heuristic Approaches to Capital Budgeting",
  journal="International Journal of Business, Economics, Finance and Management Sciences",
  year="2009",
  volume="1",
  number="3",
  pages="212--216",
  issn="2073-0519"
}