Evaluation Of Investment Alternatives Using Present Worth Analysis With Simplified Neutrosophic Sets

  • Serhat Aydin National Defence University Turkish Air Forces Academy Department of Industrial Engineering
  • Cengiz Kahraman Industrial Engineering Department, Istanbul Technical University 34367, Istanbul, Turkey
  • Mehmet Kabak Industrial Engineering Department, Gazi University 06570, Ankara, Turkey
Keywords: Engineering economics, investment analysis, present worth analysis, neutrosophic sets, fuzzy logic.

Abstract

Engineering economics is the method of evaluating and choosing the best alternative among many alternatives according to specified economic criteria. Investment analysis is a branch of engineering economics focuses on choosing the most profitable investment option for a company. Because of the insufficient data in investment analysis, decision makers use fuzzy logic in order to make evaluation easier. This paper develops simplified neutrosophic present worth analysis methodology in order to overcome difficulties in defining membership function. The numerical example illustrates the applications of the developed formula. The result of developed methodology is compared with classical present worth analysis and intuitionistic present worth analysis. The comparison results indicate that investment evaluation problem can be tackled by using the proposed methodology effectively.

DOI: http://dx.doi.org/10.5755/j01.ee.29.3.19392

Author Biographies

Serhat Aydin, National Defence University Turkish Air Forces Academy Department of Industrial Engineering
Phd. Student Research assistant , Department of Industrial Engineering
Cengiz Kahraman, Industrial Engineering Department, Istanbul Technical University 34367, Istanbul, Turkey
Prof. Department of Industrial Engineering
Mehmet Kabak, Industrial Engineering Department, Gazi University 06570, Ankara, Turkey
Asoss. Prof. Dr. Department of Industrial Engineering
Published
2018-06-25
Section
ECONOMICS OF ENGINEERING DECISIONS