Internal rate of return of fuzzy cash flows based on pessimistic and optimistic fuzzy-relation approach

Bas E.

8th International Conference on Fuzzy Logic and Intelligent Technologies in Nuclear Science, Madrid, Spain, 21 - 24 September 2008, vol.1, pp.1009-1014 identifier identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 1
  • Doi Number: 10.1142/9789812799470_0165
  • City: Madrid
  • Country: Spain
  • Page Numbers: pp.1009-1014
  • Istanbul Technical University Affiliated: Yes

Abstract

Although internal rate of return (IRR) has been studied extensively, addressing uncertainty in cash flows for the calculation of IRR has been relatively neglected. In this study, we propose an optimistic and a pessimistic fuzzy relation based approach to IRR, and define the investment decision procedure. Finally, we apply the proposed procedure to a simple project example, and investigate the PV-consistency for the decision.