Linear programming as a tool in investment decision making

Authors

DOI:

https://doi.org/10.5377/reice.v12i23.18293

Keywords:

Linear programming, investments, decision making

Abstract

Mathematical programming is a tool that is used to solve problems of various kinds in the different fields of Science, including that of Economic Sciences, in which it can be used to optimize economic and financial resources.

The article aimed to show the importance of linear programming as a tool for decision making, in the field of Economics, through the analysis of financial investments, using linear programming and the Solver tool of the Microsoft Excel program.

The results obtained show that to optimize the NPV, with the proposed investment budgetary restrictions, a total amount of $ 12,500.00 must be invested in projects A and C to obtain a profitability, measured by the NPV, of $ 5,000.00, being this the most optimal.

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References

La gran Enciclopedia de Economía. (2009). Programación matemática. Retrieved fromhttp://www.economia48.com/spa/d/programacion-matematica/programacion-matematica.htm

Mendez A. (17 de agosto de 2020). Método Simplex Paso a Paso: Ejemplos de Maximizar y Minimizar. Recuperado el 3 de noviembre de 2021 de Plan de Mejora: https://www.plandemejora.com/metodo-simplex-paso-a-paso-ejemplos-maximizar-minimizar/

Salazar López, B. (2019, Junio 6). Programación lineal. Retrieved from https://www.ingenieriaindustrialonline.com/investigacion-de-operaciones/programacion-lineal/

Westreicher, G. (n.d.). Programación lineal. Retrieved from https://economipedia.com/definiciones/programacion-lineal.html

Yepes Piqueras, V. (2014, Junio 5). Optimización y programación matemática. Retrieved from https://victoryepes.blogs.upv.es/2014/06/05/optimizacion-programacion-matematica/

Published

2024-07-09

How to Cite

Brenes González, H. A., González Tellería, S. E., & Lizano Loza, J. M. (2024). Linear programming as a tool in investment decision making. Revista Electrónica De Investigación En Ciencias Económicas, 12(23), 362–379. https://doi.org/10.5377/reice.v12i23.18293

Issue

Section

Research Articles