A Goal Programming Model for Capital Budgeting Decisions

It has been observed elsewhere (Porwal Kanti Swarup and Jaidev, 1979) that until very recently, in most work on normative models for capital budgeting, it has been assumed that firms while evaluating capital projects consider the attainment of a single goal, while in practice a firm's capital budgeting decision is seldom characterised by a single objective function. Therefore our objective in the present paper is to suggest a mUlti-objective criteria to the problem of capital budgeting by applying a goal programming model incorporating priority coefficients for different objectives.