The management of capital budgeting includes the organization, analysis, and choice of investment projects developed by companies. These projects may include, for instance, upgrading the physical infrastructure, modernizing the information technology, or new product development; therefore, they are essential for the survival and competitiveness of businesses. The purposes of this study were: (i) to propose a mathematical model for a special case in which the managers can establish the execution sequence of previously selected projects minimizing investments, and (ii) to develop a computational tool based on the integration of Real Options and heuristic with a new proposal for local search called DOP. Despite the great importance of this subject, there is a lack of research on sequencing of investment projects in the literature. The tests performed on several samples of projects indicate that the model proposed showed significant cost reduction results when compared to those of conventional capital budgeting procedures.
Investment analysis; Finance; Heuristic
