Extension of capital budgeting techniques using interval-valued Fermatean fuzzy sets

Duygu Sergi*, Irem Ucal Sari, Tapan Senapati

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

41 Citations (Scopus)

Abstract

Capital budgeting requires dealing with high uncertainty from the unknown characteristics of cash flow, interest rate, and study period forecasts for future periods. Many fuzzy extensions of capital budgeting techniques have been proposed and used in a wide range of applications to deal with uncertainty. In this paper, a new fuzzy extension of the most used capital budgeting techniques is proposed. In this content, first interval-valued Fermatean fuzzy sets (IVFFSs) are defined, and the algebraic and aggregation operations are determined for interval-valued Fermatean fuzzy (IVFF) numbers. The formulations of IVFF net present value, IVFF equivalent uniform annual value, and IVFF benefit-cost ratio (B/C) methods are generated. To validate the proposed methods, proposed formulations are illustrated with a hypothetical example, and the results are compared with classical fuzzy capital budgeting techniques.

Original languageEnglish
Pages (from-to)365-376
Number of pages12
JournalJournal of Intelligent and Fuzzy Systems
Volume42
Issue number1
DOIs
Publication statusPublished - 2022

Bibliographical note

Publisher Copyright:
© 2022 - IOS Press. All rights reserved.

Keywords

  • fuzzy benefit cost ratio
  • fuzzy engineering economics
  • fuzzy equivalent uniform annual value
  • fuzzy net present value
  • Interval-valued Fermatean fuzzy sets

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