Affiliations: School of Mathematics and Statistics, Hubei University, Hubei, China | Institute of Uncertain Systems, Huanggang Normal University, Hubei, China
Note: [] Corresponding author. Jin Peng, Institute of Uncertain Systems, Huanggang Normal University, Hubei 438000, China. Tel./Fax: +86 713 8621601; E-mail: [email protected]
Abstract: This paper discusses capital budgeting problem in uncertain environment, in which investment outlays and annual net cash flows of available projects are given subject to experts' estimations. Net present value (NPV) is extended to uncertain environment. As a result, three mathematical models are constructed for the problem, i.e., expected value model, chance-constrained programming model and chance-measure programming model. After that, some crisp equivalences are also discussed for different models. In addition, a hybrid intelligent algorithm for solving the proposed models in general cases is presented. To illustrate the modeling idea and the effectiveness of the proposed algorithm, some numerical examples are provided.
Keywords: Capital budgeting, investment, project selection, uncertainty theory, uncertain programming
