Investment Portfolio Evaluation: A Practical Techno-Economic Approach to Support Corporate Asset Management

In capital intensive industries and infrastructure sector strategic decisions often deal with maximizing the value of investment portfolio and aligning it with the strategy. Production assets typically have long life cycles and during the operating time numerous rebuilds, replacements and expansion investments take place. All of these decisions, together with the chosen maintenance strategy, affect not only the length of functional and technological life but also the length of economic life of assets. In order to optimize the investment decisions and the economic life of production assets, companies need to create an asset management strategy, which should be based on constructed and systematic decision-making at all the levels of the corporate hierarchy. In this paper we propose a practical techno-economic approach and evaluation application which aims at to fulfill the gap between theoretical approaches and companies' needs to make deliberated investment decisions in turbulent business environment