Accession Number : AD0745641

Title :   An Application of Dynamic Programming to Capital Investment Decision Analysis.

Descriptive Note : Final rept.,

Corporate Author : FEDERAL AVIATION ADMINISTRATION WASHINGTON D C OFFICE OF AVIATION POLICY AND PLANS

Personal Author(s) : Couluris,George J.

Report Date : SEP 1971

Pagination or Media Count : 110

Abstract : The report describes a method of evaluating capital investment decisions that use the dynamic programming concept. Dynamic programming is an operations research technique that is effective in solving multistage decision problems. The dynamic programming process reduces many elaborate problems into a form that may be readily solved (provided the original problem is not excessively complicated). The particular problems discussed in the report concern the identification of an optimum capital investment decision. Typically, the problem involves the selection of a capital investment decision from a group of competing or alternative investment decisions. The method proposed in the report determines the discounted (present worth) value of the costs associated with each capital investment decision. (Author)

Descriptors :   (*DYNAMIC PROGRAMMING, *DECISION THEORY), (*AIR TRAFFIC CONTROL SYSTEMS, INSTRUMENT LANDINGS), MONEY, COSTS, MATHEMATICAL MODELS, COMPUTER PROGRAMS, PROBABILITY, MANAGEMENT PLANNING AND CONTROL

Subject Categories : Operations Research
      Air Navigation and Guidance

Distribution Statement : APPROVED FOR PUBLIC RELEASE