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Fuzzy Capital Budgeting Using Fermatean Fuzzy Sets

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Intelligent and Fuzzy Techniques: Smart and Innovative Solutions (INFUS 2020)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1197))

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Abstract

Investment projects are mostly evaluated by capital budgeting techniques to measure their profitability. The parameters used in capital budgeting such as future cash flows, interest rate and useful life involves high uncertainty due to the lack of information for the future environment. Since the uncertainty involved in forecasting the parameters is mostly in high levels, fuzzy set theory could be used in the determination of capital budgeting parameters to handle uncertain information in the analyses. Fermatean fuzzy sets are one of the most recent extensions of fuzzy set theory which are capable to handle higher levels of uncertainties by assigning fuzzy parameters from a larger domain. In this paper, fuzzy capital budgeting techniques that are fuzzy net present worth, fuzzy net future worth and fuzzy net annual worth are extended using fermatean fuzzy sets. An illustration for the calculations is also presented.

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Author information

Authors and Affiliations

  1. Department of Industrial Engineering, MEF University, Ayazağa Cad. No. 4, Maslak, Sarıyer, 34396, İstanbul, Turkey

    Duygu Sergi

  2. Industrial Engineering Department, Istanbul Technical University, Macka, Istanbul, Turkey

    Irem Ucal Sari

Authors
  1. Duygu Sergi
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  2. Irem Ucal Sari
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Corresponding author

Correspondence to Duygu Sergi .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Cengiz Kahraman

  2. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Sezi Cevik Onar

  3. Department of Industrial Engineering, Istanbul Technical University, İstanbul, Turkey

    Basar Oztaysi

  4. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Irem Ucal Sari

  5. Industrial Engineering Department, Yildiz Technical University, Istanbul, Turkey

    Selcuk Cebi

  6. Industrial Engineering Department, Galatasaray University, Istanbul, Turkey

    A. Cagri Tolga

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Sergi, D., Sari, I.U. (2021). Fuzzy Capital Budgeting Using Fermatean Fuzzy Sets. In: Kahraman, C., Cevik Onar, S., Oztaysi, B., Sari, I., Cebi, S., Tolga, A. (eds) Intelligent and Fuzzy Techniques: Smart and Innovative Solutions. INFUS 2020. Advances in Intelligent Systems and Computing, vol 1197. Springer, Cham. https://doi.org/10.1007/978-3-030-51156-2_52

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