Project analysis using a linear approach (P.A.U.L.A.)

  • Emanuele Carezzano
  • Maria Elena De Giuli
  • Umberto Magnani
Article

Abstract

We define a general model (called PAULA) for the valuation, optimal management and selection among mutually exclusive safe projects. By exploiting the formal and financial features of the associated linear problems (primal and dual), we put forward two proposals to define an optimal internal financial law (IFL). They may be used to reduce the multiplicity of the IFLs and to avoid economically arbitrary outcomes.

Keywords

project analysis linear programming internal financial law (IFL) financial leverage discounted cash-flows (DCF) decomposition 

Riassunto

Si definisce un modello generale (PAULA) per la valutazione, selezione e gestione ottimale di progetti certi alternativi. Sfruttando i risvolti formali e finanziari dei problemi lineari associati (diretto e duale), si formulano poi due proposte per definire una legge finanziaria interna (IFL) ottimale, utili sia per abbattere la molteplicità intrinseca delleIFL, sia per evitare risultati economicamente arbitrari nel loro uso.

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Copyright information

© Springer-Verlag 1993

Authors and Affiliations

  • Emanuele Carezzano
    • 1
  • Maria Elena De Giuli
    • 2
  • Umberto Magnani
    • 3
  1. 1.Price Waterhouse s.a.s.Milano
  2. 2.Dipartimento di Ricerche Aziendali Sezione di Matematica Generale ed ApplicataUniversità di PaviaPaviaItalia
  3. 3.Dipartimento di Ricerche Aziendali Sezione di Matematica Generale ed ApplicataUniversità di PaviaPaviaItalia

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