Fuzzy Equivalent Annual-Worth Analysis and Applications

Kahraman C., Kaya I.

FUZZY ENGINEERING ECONOMICS WITH APPLICATIONS, vol.233, pp.71-81, 2008 (Scopus) identifier identifier


Equivalent annual worth analysis is one of the most used analysis techniques for the evaluation of investments. The main process is to convert any cash flow to an equivalent uniform cash flow. Later, the decision is given taking the economic category of the problem into account. If it is a fixed input problem, you should maximize equivalent uniform annual benefit. If it is a fixed output problem, minimize equivalent uniform annual cost, and if it is neither output nor input fixed problem, maximize equivalent uniform annual profit. In this chapter, it is shown that how you can apply this technique when the parameters are all fuzzy. Numerical examples are given for different analysis periods.