Application of Linear Programming Term Structure Model of Interest Rates in the Management of Project Total Life Cycle Cost

摘要：

The idea of value management has provided us the management concept which takes the project total life cycle as the objective point. At present, when total life cycle cost is calculated by present value method, the discount rate mostly uses the fixed annual interest rate or the project capital cost, which does not correspond with the actual situations. In this paper, the discount rate is divided into risk-free discount rate and risk discount rate. We propose using the term structure model of interest rates developed by linear programming to determine the risk-free discount rate, and firstly apply it into calculate the project total life cycle cost, so as to provide a new method for accurately calculating project total life cycle cost.

关键词： Discount rate Linear programming Total life cycle cost Term structure model of interest rate

作者: Rong-xi ZHOU Jun CHE Xiao-ying BAI

作者单位: School of Economics and Management,Beijing University of Chemical Technology,Beijing,P.R.China,10002 College of Science,Beijing University of Chemical Technology,Beijing,P.R.China,100029

会议类型: 国际会议

会议名称: The 2nd International Conference on Vale Engineering and Vale Management(2009)(2009年北京价值工程与价值管理国际会议)

会议地点: 北京

会议语种:英文

页码: 644-648

在线出版日期: 2009-10-16（万方平台首次上网日期，不代表论文的发表时间）