Investment projects evaluation in a fuzzy environment using the Simplified WISP method
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Date
2023
Authors
Stanujkić, Dragiša
Fedajev, Aleksandra
Santos, Marcos
Journal Title
Journal ISSN
Volume Title
Publisher
University of Belgrade, Technical Faculty in Bor
Source
Serbian Journal of Management
Volume
18
Issue
2
Abstract
This paper examines the importance of investment activity for companies and the challenges they face when evaluating investment projects in a fuzzy environment, that is when decisions have to be made based on some predictions and uncertain or imprecise data. The study focuses on the usage of a new extension of the Simplified WISP (Weighted Sum Product) method, which allows the use of triangular fuzzy numbers, as a tool for evaluating investment projects and minimizing the risk associated with such decisions. Investment projects were evaluated based on the following criteria: Net Present Value, Internal Rate of Return, Profitability Index, Payback Period, and Risk of project failure. The proposed extension of the Simplified WISP method can be used to solve other complex decision problems associated with predictions and uncertainties. The paper highlights the benefits of using this MCDM technique in investment project evaluation and the potential to improve decision-making processes. The study also discusses the challenges associated with applying MCDM techniques in a fuzzy environment and proposes solutions to overcome them. It also provides valuable insights for academics, practitioners, and policymakers interested in investment evaluation and decision-making processes.
Description
Keywords
MCDM, fuzzy, triangular fuzzy numbers, Simplified WISP, investment projects
Citation
DOI
10.5937/sjm18-44522
Scopus
ISSN
1452-4864
2217-7159
2217-7159
ISBN
License
CC-BY