Calculation Optimization for NPV Index Designed for Independent Investment Projects Portfolio within Oil Company

Student: Egiazarian Vage

Educational Programme: Business Informatics (Bachelor)

Final Grade: 8

Year of Graduation: 2016

Instead of developing a method or program to maximize the contribution of the project in the company's activities, in this paper, we will consider a more realistic problem - optimization of a portfolio of independent investment projects of the oil company, with constraints on time and money, taking into account the time value of money. The aim of this work is to develop a computer program to find the optimal portfolio for the oil company. To solve this problem, in this paper, we will consider the method of “Real coding Genetic Algorithm” (RGA). This algorithm finds the global maximum of the function of total Net Present Value (NPV). In addition to finding the maximum present value the algorithm will output the full investment timeline, indicating what investments and at what times to make.

Full text (added May 20, 2016)

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