Optimization of Investments Decisions. Is the undeveloped world skipping the opportunity?
Mwitondi Kassim Said (The Institute of Finance Management, Dar es Salaam)
Download Article | Published On 01/07/1998

Abstract

One of the basic principles of solving problems is separating the problem-solving phase from implementation. It is believed, in most cases, that if a correct algorithm is pursued in the problem-solving phase, then implementation is likely to lead to a desired solution. Sometimes however, the problem-solving phase is carried out and probably simulated, in an environment quite distinct from the one in which implementation eventually takes place. Even with a mathematically sound model, and an acceptable logical-flow of events what may be looked at as side-issues can seriously hamper implementation In this paper, we we’ll be looking at the concept of investment-decision making and the efforts that are constantly made to ensure that correct decisions are reached. We’ll be arguing that investment decisions optimization models are not necessarily a panacea to poor investment outcomes in the least developed world albeit being rigorously efficient. We devote more time to the problem-solving phase and as a result we postpone implementation without calling it off altogether

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