A fuzzy pay-off method for real option valuation.
Capital budgeting problems with fuzzy cash flows.
We consider the internal rate of return (IRR) decision rule in capital budgeting problems with fuzzy cash flows. The possibility distribution of the IRR at any r ≥ 0, is defined to be the degree of possibility that the (fuzzy) net present value of the project with discount factor r equals to zero. Generalizing our earlier results on fuzzy capital budegeting problems [Car99] we show that the possibility distribution of the {IRR} is a highly nonlinear function which is getting more and more unbalanced...
A note on -norm-based operations on fuzzy intervals
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