An optimal investment policy for some selected projects at the Ghana Investments Centre

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
There has always been an urgent need to make maximum use of available resources. The thesis, being a model of Capital-Budgeting problem for a given set of investment opportunities available at the Ghana Investments Centre, has actually achieved the required aim of Maximizing Total Prof it. This has been made possible by applying an efficient Zero-One Integer Programming Algorithm developed by Egon Balas. The solution obtained for the problem ensures maximum total profit roughly ranging from 110 percent to 630 percent of the various amounts invested as against the 81 percent of the maximum amount which yielded from the allocation of funds obtained from the field. The optimum allocation of funds was to allocate 40 percent for the first year, 30 percent for the second year, 20 percent for the third year and 10 percent for the fourth year. This optimum policy for this set of investment opportunities at the Ghana Investments Centre, if accepted will be the basis of sound advice for potential investors and will lead to increased efficiency in private sector investment.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Science in Mathematics, 1994