The Research Of Investment Decision In Constructing Project

Investment decision belongs to complex system engineering, which is long-period, large-scale, great-cost and has many factors influencing it. The conclusion made by the investment decision directly affects the project's success. For project management, the key problem is to make scientific decision for investment. The paper systematically discusses the theory of the investment decision in constructing project.Based on the popular method and process of the investment decision, the importance of the Social Assessment is presented. The paper points out the weaknesses in the NPV /IRR investment decision model and suggests new methods to avoid them. Entropy theory was a concept in physics. With its development in information theory, the method of entropy is used in many subjects. The paper applies the entropy theory to the analysis of investment decision and presents the methods of real weight combined the concept of entropy with decision-maker's subjective. To computer the risk of investment decision, a decision model with risk degree is built.In order to simulate the dynamic process of the project, the paper proposes an approach based on computer simulation and applies the method to evaluate the feasibility of the project through analyzing the simulative method in investment decision. In this research, the method is applied in a practical project to determine that it is an impersonal and reliable method.