INTERNAL RATE OF RETURN OF FUZZY CASH FLOWS BASED ON PESSIMISTIC AND OPTIMISTIC FUZZY-RELATION APPROACH

摘要

Although internal rate of return (IRR) has been studied extensively, addressing uncertainty in cash flows for the calculation of IRR has been relatively neglected. In this study, we propose an optimistic and a pessimistic fuzzy relation based approach to IRR, and define the investment decision procedure. Finally, we apply the proposed procedure to a simple project example, and investigate the PV-consistency for the decision.