Using Dynamic Programming in the Optimal Investment Decision-making Process in Iran Iron Mines companies

Aim of this study is dynamic programming model application for the investment decision. Successful investments draw in capital and eventually the weight of capital will finally subsume the investment opportunity. This is the principle of the efficient market. But markets overshoot and undershoot and can be inefficient over long and variable periods of time. This is when skill in investment timing comes in. In this research used dynamic programming model and proposed optimal investment for all three Iron Mines that accepted in Tehran Stock Exchange since(2011 to 2012) and our investment is 0 to 5 million rials. results shows that Chadormalou mine company is best selection and it has most profitability.