Using EVA As A Decision Metric In Capital Budgeting

Fuzzy capital budgeting

Fuzzy equivalents of all the classical capital budgeting (investment choice) methods are generalised or proposed. These equivalents can be used to evaluate and compare projects in which the cash ows, duration time and required rate of return (cost of capital) are given imprecisely, in the form of a fuzzy number. c © 2000 Elsevier Science B.V. All rights reserved.

Real Options – Capital Budgeting

Most investment decisions present the following three characteristics: • Irreversibility: The investment is partially or completely sunk, i.e. it cannot be recovered. • Uncertainty: The best that can be done is to assess the probabilities of the alternative outcomes that can imply larger or smaller profits. • Timing: The decision can be postponed in order to get more information (but never comp...

Cognitive Biases in Capital Budgeting

Solving a bi-objective project capital budgeting problem using a fuzzy multi-dimensional knapsack

In this paper, the researchers have proposed a multi-dimensional knapsack model for project capital budgeting problem in uncertain situation which has been modeled through fuzzy sets. The optimistic and pessimistic situations were considered and associated deterministic models were yielded. Numerical example has been supplied toillustrate the performance of proposed model. The results were prom...

Capital budgeting: A data envelopment analysis approach

Budget allocation is a common task carried in our daily life. As it seems to be necessary to perform this task in an ideal manner this paper mainly deals with budget allocation problem. The main key feature of this work is that it uses a mathematical programming technique Data Envelopment Analysis (DEA) for formulating a proper model for capital budget allocation. This formulation is based on t...