%0 Journal Article %A Jindřiška Šedová and Miloš Šeda %D 2008 %J International Journal of Computer and Systems Engineering %B World Academy of Science, Engineering and Technology %I Open Science Index 21, 2008 %T A Comparison of Exact and Heuristic Approaches to Capital Budgeting %U https://publications.waset.org/pdf/15666 %V 21 %X This paper summarizes and compares approaches to solving the knapsack problem and its known application in capital budgeting. The first approach uses deterministic methods and can be applied to small-size tasks with a single constraint. We can also apply commercial software systems such as the GAMS modelling system. However, because of NP-completeness of the problem, more complex problem instances must be solved by means of heuristic techniques to achieve an approximation of the exact solution in a reasonable amount of time. We show the problem representation and parameter settings for a genetic algorithm framework. %P 620 - 624