Document Type

Closed Project

Publication Date

Winter 1993


Hulya J. Yazici

Course Title

Advanced Engineering Economics

Course Number

EMGT 535


Four dynamic capital investment criteria were presented and discussed. Those criteria are: the discounted certainty equivalent (DCE) criterion, the time-weighted utility (TMU) criterion, and the horizon utility (HU) criterion, and the dynamic target-wealth criterion for the sequential budgeting process. After discussion of several points related to the criteria, several recommendations were made, including evaluating investment opportunities on the basis of wealth positions rather than cash flow.


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