This paper presents a real-life application of a fuzzy expert system aimed at rating and ranking firms. Unlike standard Discounted Cash Flow (DCF) models, it integrates financial, strategic and business determinants and processes both quantitative and qualitative variables.Twenty-one value...

This paper presents a proposal for evaluating real options. The existing models are not widely used by corporate managers as they are formally complex, rather difficult to understand and rest on strong implicit assumptions. We propose a possible alternative by using a fuzzy expert system that...

This paper makes use of a fuzzy expert system to evaluate a strategic investment. In particular, the model proposed aims at replicating the actual decision process accomplished by Florim S.p.a., an Italian ceramic tile firm which recently had the opportunity of buying a firm in the USA. The...

This paper presents a new approach to real options. The current options-based models have provided new insights into capital-budgeting decisions. Unfortunately they are not widely used by corporate managers and practitioners as they are formally complex, rather difficult to understand and rest...

In investment appraisal, uncertainty can be managed through intervals or fuzzy numbers because the arithmetical properties and the extension principle are well established and can be successfully applied in a rigorous way. We apply interval and fuzzy numbers to the Average Internal Rate of...

This paper presents a methodology which blends sensitivity analysis and fuzzy arithmetic for managing uncertainty in project financing transactions. Specifically, we adopt the perspective of the equityholders and use the average Return On Equity (ROE) to measure shareholder value creation and,...