Allocating Limited Budgets Among Competing Projects
The economic objective in allocating a budget is to maximize the total return on investment. In this chapter we illustrate practical approaches to budget allocation under two conditions. First, we illustrate allocation of a single budget, where the objective is to obtain the maximum return for that budget, without regard to future budgets. To do this, it is essential to make design/size increments of projects compete for funding.
KeywordsInvestment Cost Limited Budget Budget Allocation Annual Budget Chief Financial Officer
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