In this paper, the problem of machine replacement in a changing technological environment is formulated as a problem in modern control theory. The objective is to maximize the present value of all future net profits over a class of infinite chains of machines where each link in the chain...

Josef Anton Strini analyzes a special stochastic optimal control problem. The problem under study arose from a dynamic cash management model in finance, where decisions about the dividend and financing policies of a firm have to be made. Additionally, using the dynamic programming approach, he...