Capital budgeting techniques under fuzzy information

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.