On Fuzzy Internal Rate of Return
نویسندگان
چکیده
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. We show that the possibility distribution of the IRR is a highly nonlinear function of quasi-triangular form. Furthermore we prove that the fuzzy IRR is stable under small changes in the membership functions of future cash flows.
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