Project Portfolio Selection with the Maximization of Net Present Value

The aim of this study is to present an efficient solving method for the project portfolio selection problem. The objective is to maximize the net present value (NPV) of the project portfolio. The problem is first modeled mathematically. Then, two metaheuristics, the genetic algorithm and simulated annealing, are applied to solve this NP-hard problem. Finally, a comprehensive computational experiment is performed on a set of instances. The results of the computational experiment show that the genetic algorithm performs better than the simulated annealing algorithm.