Optimizing NPV of Projects under Cash Constraint by Modified ACO Algorithm

Abstract

Considering the condition that cash and time are constrained, and the general background of growing financing cost, aiming at maximizing the net present value (NPV), an optimizing model for this kind of problem is established. Ant colony optimization is modified to solve above problem, an elitist strategy is introduced to accelerate convergence. A specific example of this problem is utilized to validate above model and its algorithm. It indicates from the result that the model can provide a dispatch strategy of the project, the algorithm provide a satisfactory solution for the problem. The convergence of the algorithm is relatively good and it can be used to solve practical problems.