Preference trade-offs in capital budgeting decisions
Capital budgeting analysis may be characterized as an attempt to satisfy a set of potentially conflicting objectives. Corporate managers may be faced with multiple and conflicting objectives. The wide-spread acceptance of prioritized objectives in capital budgeting has stimulated the adoption of pre-emptive goal programming models. This paper presents a procedure to model a goal programming based capital budgeting model as a polynomial expression where inter- and intra-goal trade-offs can be achieved subject to the marginal rates of substitution between preference levels. © 1985 Taylor and Francis Group, LLC.
IIE Transactions (Institute of Industrial Engineers)
Deckro, R., Spahr, R., & Hebert, J. (1985). Preference trade-offs in capital budgeting decisions. IIE Transactions (Institute of Industrial Engineers), 17 (4), 332-337. https://doi.org/10.1080/07408178508975312