Choosing the best method of depreciating assets and after-tax economic analysis under uncertainty using fuzzy approach

Khalili, S.; Mehrjerdi, Y.; Zare, H.

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Decision Science Letters

ISSN 1929-5812 (Online) - ISSN 1929-5804 (Print) Quarterly Publication Volume 3 Issue 4 pp. 457-466 , 2014

Choosing the best method of depreciating assets and after-tax economic analysis under uncertainty using fuzzy approach Pages 457-466 Download PDF

Authors: Saeed Khalili, Yahia Zare Mehrjerdi, Hassan Khademi Zare

Keywords:

Abstract: In the past, different methods for asset depreciation have been defined but most of these procedures deal with certain parameters and inputs. The availability of certain parameters in many real world situations is difficult and sometimes impossible. The primary objective of this paper is to obtain methods for calculating depreciation where some of the defined parameters are under uncertainty. Hence, by using the fuzzy science basics, extension principle and ?-cut technique, we rewrite some classic methods for calculating depreciation in fuzzy form. Then, for comparing the methods of fuzzy depreciation under uncertain conditions by using the formula of calculating the Fuzzy Present worth (FPW), the Present worth of Tax saving (PWTS) of any aforementioned methods has been obtained. Finally, since the amount of tax savings achieved for each of the methods is a fuzzy number, one of the fuzzy prioritization methods is used in order to select the best depreciation technique.

How to cite this paper

 Khalili, S., Mehrjerdi, Y & Zare, H. (2014). Choosing the best method of depreciating assets and after-tax economic analysis under uncertainty using fuzzy approach.Decision Science Letters , 3(4), 457-466.

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