Evaluation the profitability of dynamic investment projects by using ordered fuzzy numbers

Advances in Mathematical Finance and Applications

مقاله 4، دوره 8، شماره 4، آذر 2023، صفحه 1139-1153   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2020.1899950.1425

نویسندگان

jamil Jalilian¹؛ Reza Ehtesham Rasi^{* 2}؛ Mirfeiz Fallah Shams³

¹Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran.

²Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran

³Department of Finance, Islamic Azad University , Central Tehran Branch, Tehran, Iran

چکیده

The purpose of this paper is to provide a new approach to incorporating uncertainty into assessing the profitability of investment projects. In the real world, the capital budgeting problem is accompanied by uncertainty and risk associated dealing with imprecise data. The major contribution of this research is the development of a novel approach to evaluating the profitability of an investment project in uncertainty condition. At first, we presented a new discount method that can be used by investors when they wants to be able to make an investment decision. That is, we developed a new method to evaluate the profitability of investment projects by or-dered fuzzy net present value (OFNPV). In addition, ordered fuzzy numbers (OFN) are used to describe the dynamics of changes of the defined investment parameters in the assumed time horizon. By using ordered fuzzy numbers, we develop an effective tool for assessing the profitability of investment projects. This assessment tool not only enables decision-makers to decide under uncertainty conditions whether or not a given investment project should be carried out or rejected, but also facilitates selecting the most effective project, e.g. a project with the most expected probability of success.

کلیدواژه‌ها

investment projects؛ profitability؛ fuzzy؛ capital budgeting؛ dynamic

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