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This paper investigates the optimal order in which a collection of projects should be taken on if only one project can be done at a time. We associate a number called priority value with each project and show that one should order the projects in decreasing priority values. We also show that this priority value rule is equivalent to the replication rule in the literature. Finally, we compare the rankings given by the priority value rule and the ordinary present value rule.
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Received: April 23, 1997; revised version: July 15, 1998.
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Shea, Kl., Tang, Tm. & Tso, Ps. Optimal investment sequence. Econ Theory 15, 215–219 (2000). https://doi.org/10.1007/s001990050008
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DOI: https://doi.org/10.1007/s001990050008