Modified Net Final Value: Revisiting the Net Final Value in Uncertainty

M.G, BARBERÀ MARINÉ; X., CÀMARA; A., FERNÁNDEZ; M. BELÉN GUERCIO

The Journal of Financial Decision Making

Klidarithmos Publications

Lugar: Atenas; Año: 2009 vol. 5 p. 17 - 27

0214-8307

In the present work we propose a methodology for the calculation of the Modified Net Final Value in uncertainty. This methodology will allow us to analyze investment projects that present financial imbalances and require additional financing after the start-up. It supposes a variation of the method developed by Borràs et al. (2001), since it determines in every period the necessity of additional financing. The application of the method of the Modified Net Final Value implies, in some cases, the use of two different interest rates to compound the same triangular fuzzy number. The result of such compounding process is a nontriangular a fuzzy number. With the aim of providing a methodology of easy application, we triangulate this result, subject to the condition of maintaining the same insolvency risk.