The Study on Investment Timing of Transportation Infrastructure Constructions in Cities

Many transportation infrastructures have been put into construction in cities recently. But the current planning for transportation infrastructures constructions does not adequately consider the investment timing of the projects. This paper analyzed the affection of investment timing to the project profits with different market demand functions, and presented a mathematical model to choose the optimal investment timing of projects. In the model, many factors have been concerned, such as: project age, investment timing, capital cost, market demand, discount rate etc. It is helpful for the decision makers and project units to realize the potential benefits of considering the optimal investment timing and to make a suitable decision. With the analysis of those influential factors, this paper presents the optimal strategies to choose the investment timing according to different market demands.