Optimal multinational capital budgeting under uncertainty

This paper discusses the multinational capital budgeting problem - when there are some candidate foreign projects, which project(s) should the investor choose? In the paper, special cash flows and value sources of foreign projects are introduced. Regarding project parameters such as construction costs, annual net operating cash flows, terminal values of the projects as well as the foreign exchange rates as uncertain variables, the paper proposes one new uncertain zero-one integer model for optimal multinational project selection. To solve the problem, a hybrid intelligent algorithm integrating the 99 Methods and genetic algorithm is provided. As an illustration, an application example is also presented. (C) 2011 Elsevier Ltd. All rights reserved.