Capital budgeting techniques under fuzzy information

Author

Kahraman, Cengiz ; Tolga, Ethem

Author_Institution

Dept. of Ind. Eng., Istanbul Tech. Univ., Turkey

fYear

1998

fDate

10-12 Nov 1998

Firstpage

242

Lastpage

249

Abstract

Cash amounts and interest rates are usually estimated by using educated guesses based on expected values or other statistical techniques to obtain them. Fuzzy numbers can capture the difficulties in estimating these parameters. Fuzzy present value, fuzzy equivalent uniform annual value, fuzzy future value, fuzzy benefit-cost ratio, and fuzzy payback period are the methods examined with numeric examples in the paper. The paper also gives the ranking methods of fuzzy numbers

Keywords

budgeting data processing; cost-benefit analysis; fuzzy logic; fuzzy set theory; inference mechanisms; uncertainty handling; capital budgeting techniques; cash amounts; educated guesses; expected values; fuzzy benefit-cost ratio; fuzzy equivalent uniform annual value; fuzzy future value; fuzzy information; fuzzy numbers; fuzzy payback period; fuzzy present value; interest rates; numeric examples; ranking methods; statistical techniques; Costs; Economic indicators; Fuzzy set theory; Fuzzy sets; Humans; Industrial engineering; Mathematical programming; Parameter estimation; Programming profession; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Tools with Artificial Intelligence, 1998. Proceedings. Tenth IEEE International Conference on

Conference_Location

Taipei

ISSN

1082-3409

Print_ISBN

0-7803-5214-9

Type

conf

DOI

10.1109/TAI.1998.744850

Filename

744850