<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>0874-5161</journal-id>
<journal-title><![CDATA[Investigação Operacional]]></journal-title>
<abbrev-journal-title><![CDATA[Inv. Op.]]></abbrev-journal-title>
<issn>0874-5161</issn>
<publisher>
<publisher-name><![CDATA[APDIO - Associação Portuguesa de Investigação Operacional]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S0874-51612004000100001</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[On the use of multiple financial methods in the evaluation and selection of investment projects]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Godinho]]></surname>
<given-names><![CDATA[Pedro Cortesão]]></given-names>
</name>
<xref ref-type="aff" rid="A01"/>
<xref ref-type="aff" rid="A02"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Afonso]]></surname>
<given-names><![CDATA[António Ricardo]]></given-names>
</name>
<xref ref-type="aff" rid="A01"/>
<xref ref-type="aff" rid="A03"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Costa]]></surname>
<given-names><![CDATA[João Paulo]]></given-names>
</name>
<xref ref-type="aff" rid="A01"/>
<xref ref-type="aff" rid="A02"/>
</contrib>
</contrib-group>
<aff id="A01">
<institution><![CDATA[,Universidade de Coimbra Faculdade de Economia ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
</aff>
<aff id="A02">
<institution><![CDATA[,INESC - Instituto de Engenharia de Sistemas e Computadores  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
</aff>
<aff id="A03">
<institution><![CDATA[,Portugal Telecom Inovação  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>06</month>
<year>2004</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>06</month>
<year>2004</year>
</pub-date>
<volume>24</volume>
<numero>1</numero>
<fpage>1</fpage>
<lpage>20</lpage>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://scielo.pt/scielo.php?script=sci_arttext&amp;pid=S0874-51612004000100001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://scielo.pt/scielo.php?script=sci_abstract&amp;pid=S0874-51612004000100001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://scielo.pt/scielo.php?script=sci_pdf&amp;pid=S0874-51612004000100001&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[This paper addresses the analysis and evaluation of investment projects within a multicriteria framework. We mathematically define a multicriteria framework and we present a result that allows the identification of redundant methods. Then we try to define which financial methods can, and which ones cannot, be simultaneously used according to that framework. We also try to establish a set of guidelines to help decision makers choose the financial methods best suited to their particular situations.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[Project Evaluation]]></kwd>
<kwd lng="en"><![CDATA[Project Analysis]]></kwd>
<kwd lng="en"><![CDATA[Multicriteria Decision Aid]]></kwd>
</kwd-group>
</article-meta>
</front><body><![CDATA[ <p align="center"><b>On the use of multiple financial methods in the evaluation    and selection of investment projects</b></p>     <p align="center">Pedro Cortes&atilde;o Godinho * &#8224;</p>     <p align="center">Ant&oacute;nio Ricardo Afonso * &#8225;</p>     <p align="center">Jo&atilde;o Paulo Costa * &#8224;</p>     <p align="center">&nbsp; * Faculdade de Economia da Universidade de Coimbra</p>     <p align="center"><a href="mailto:pgodinho@sonata.fe.uc.pt">pgodinho@sonata.fe.uc.pt</a>    &nbsp; </p>     <p align="center">&#8224; INESC - Instituto de Engenharia de Sistemas e Computadores</p>     <p align="center">&#8225; Portugal Telecom Inova&ccedil;&atilde;o </p>     <p>&nbsp;</p>     <p align="center"><b>Abstract:</b></p>     ]]></body>
<body><![CDATA[<p align="justify">This paper addresses the analysis and evaluation of investment    projects within a multicriteria framework. We mathematically define a multicriteria    framework and we present a result that allows the identification of redundant    methods. Then we try to define which financial methods can, and which ones cannot,    be simultaneously used according to that framework. We also try to establish    a set of guidelines to help decision makers choose the financial methods best    suited to their particular situations. </p>     <p><b>Keywords:</b> Project Evaluation, Project Analysis, Multicriteria Decision    Aid </p>     <p>&nbsp;</p>     <p>&nbsp;</p>     <p>Texto completo apenas dispon&iacute;vel em PDF.</p>     <p>Full text only available in PDF format.</p>     <p>&nbsp;</p>     <p>&nbsp;</p>     <p><b>References</b> </p>          <!-- ref --><p>Afonso, A.R., Godinho, P.C. and Costa, J.P., Estrutura&ccedil;&atilde;o dos Crit&eacute;rios de Avalia&ccedil;&atilde;o e Selec&ccedil;&atilde;o de Projectos no &Acirc;mbito de um Sistema de Apoio &agrave; Decis&atilde;o (in Portuguese), Portuguese Journal of Management Studies, IV (1999) 267-289.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326679&pid=S0874-5161200400010000100001&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Asquith, D. and Bethel, J.E, Using Heuristics to Evaluate Projects: the Case of Ranking Projects by IRR, The Engineering Economist, 40 (1995) 287-294.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326680&pid=S0874-5161200400010000100002&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Bana e Costa, C., Structuration, Construction et Exploration d'un Mod&egrave;le Multicrit&egrave;re d'Aide &agrave; la D&eacute;cision (in French), PhD Thesis, Instituto Superior T&eacute;cnico, Lisbon, Portugal (1992).     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326681&pid=S0874-5161200400010000100003&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Brealey, R. and Myers, S., Principles of Corporate Finance, 6th edition, McGraw-Hill (2000).     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326682&pid=S0874-5161200400010000100004&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Fahrni, P. and Spatig, M., An Application-Oriented Guide to R&amp;D Project Selection and Evaluation Methods, R&amp;D Management, 20 (1990) 155-171.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326683&pid=S0874-5161200400010000100005&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Godinho, P.C. and Costa, J.P., A Note on the Use of Bicriteria Decision Trees in Capital Budgeting, Global Business and Economics Review, 4 (2002) 147-158.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326684&pid=S0874-5161200400010000100006&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Hertz, D.B. and Thomas, H., Risk Analysis and its Applications, 1<sup><i>st</i></sup> Edition, John Wiley and Sons (1983). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326685&pid=S0874-5161200400010000100007&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Hillier, F.S., The Derivation of Probabilistic Information for the Evaluation of Risky Projects, Management Science, 9 (1963) 443-457.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326686&pid=S0874-5161200400010000100008&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>McDaniel, W.R., McCarty, D.E. and Jessel, K.A., Discounted Cash Flow with Explicit Reinvestment Rates: Tutorial and Extension, The Financial Review, 23 (1988) 369-385.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326687&pid=S0874-5161200400010000100009&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Park, C.S. and Sharp-Bette, G.P., Advanced Engineering Economics, 1<sup><i>st</i></sup> Edition, John Wiley and Sons (1990).     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326688&pid=S0874-5161200400010000100010&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Remer, D.S. and Nieto, A.P., A Compendium and Comparison of 25 Project Evaluation Techniques. Part 1: Net Present Value and Rate of Return Methods, International Journal of Production Economics, 42 (1995) 79-96.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326689&pid=S0874-5161200400010000100011&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Remer, D.S. and Nieto, A.P., A Compendium and Comparison of 25 Project Evaluation Techniques. Part 2: Ratio, Payback and Accounting Methods, International Journal of Production Economics, 4 (1995) 101-129.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326690&pid=S0874-5161200400010000100012&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Roy, B., Multicriteria Methodology for Decision Aiding, Kluwer Academic Press, Dordrecht (1996).     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326691&pid=S0874-5161200400010000100013&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Trigeorgis, L. and Mason, S.P., Valuing Managerial Flexibility, Midland Corporate Finance Journal, Spring (1987) 14-21.     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326692&pid=S0874-5161200400010000100014&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><!-- ref --><p>Trigeorgis, L., Real Options: Managerial Flexibility and Strategy in Resource    Allocation, The MIT Press (1996). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&#160;<a href="javascript:void(0);" onclick="javascript: window.open('/scielo.php?script=sci_nlinks&ref=326693&pid=S0874-5161200400010000100015&lng=','','width=640,height=500,resizable=yes,scrollbars=1,menubar=yes,');">Links</a>&#160;]<!-- end-ref --><p>&nbsp; </p>           ]]></body><back>
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