Multi-project Funds Allocation Research Based On Time Value

In recent years, the manufacturing industry of China has been developing in asustained high speed, while at the same time, the total number of the manufacturingcompanies is decreasing, which indicates that a large number of the manufacturingcompanies will be faced of the case of a number of the projects needs to be done. Itinvolves multi-project management.The research achievements of multi-project management in the domestic are few.Optimal allocation of resources is the core issue of their theoretical research. How tomake the plan of the way to use the limited resources and make it into control, toensure that all the projects waiting to be build can be finished within the stipulatedtime. And finally the company can also achieve the maximum revenue. This hasbecome an urgent need of solving the problem for those companies whose incomesmostly are decided by the gains of their projects.As one of the most important resource, a reasonable allocation of funds to eachproject is so important to make sure that there will not be an interruption of the fundsflow. So when a company makes early decisions, it’s necessary to make a detailedestimation of the expenses and revenues in each project. Then we can work out that inthe case of limited corporate resources, how to choose a portfolio of projects that thecompany can gain maximum benefit in the end of the calculation period.Projects are different from other general commodities. It tends to happen in a longduration, to have a great transaction amount and some other characteristics. And withthe time value of money, the longer the duration is and the greater the amount is, themore obvious the impact is. So, when a company is making the project investmentdecisions, we cannot ignore the impact of the time value of money. For differentmethods of payments, the ultimate value of the same amount of project payment isdifferent, too.