A fuzzy linguistic ontology payoff method for aerospace real options valuation

Authors:
James A. Rodger
Affiliations:
MIS and Decision Sciences, Eberly College of Business & Information Technology, Indiana University of Pennsylvania, 664 Pratt Drive, Indiana, PA 15705, USA
Venue:
Expert Systems with Applications: An International Journal
Year:
2013

Citing 9
Cited 1

Justifying investments in new information technologies

Journal of Management Information Systems
Ontologies to Support Process Integration in Enterprise Engineering

Computational & Mathematical Organization Theory
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment

Information Systems Research
Pricing fuzzy vulnerable options and risk management

Expert Systems with Applications: An International Journal
A fuzzy ontological knowledge document clustering methodology

IEEE Transactions on Systems, Man, and Cybernetics, Part B: Cybernetics
Investment project valuation based on a fuzzy binomial approach

Information Sciences: an International Journal
Possibility for Decision: A Possibilistic Approach to Real Life Decisions

Possibility for Decision: A Possibilistic Approach to Real Life Decisions
A real option theoretic fuzzy evaluation model for enterprise resource planning investment

Journal of Engineering and Technology Management
A fuzzy real option approach for investment project valuation

Expert Systems with Applications: An International Journal

Aggregation operators for fuzzy ontologies

Applied Soft Computing

Quantified Score

Hi-index	12.05

Visualization

Abstract

In this paper, we present a fuzzy linguistic ontology payoff method for the valuation of real options in the aerospace industry. Using real data, we apply the fuzzy linguistic approach to determine the credibility measures and the credibilistic expected value for the fuzzy real options valuation payoff method. This approach is used to obtain a multi-scenario modeling process by envisioning three scenarios: optimistic, most likely, and pessimistic. In addition, our experience with the scenario estimates is premised on results in an operating profit forecast. This forecast corresponds to a plausible outcome within the aerospace licensing maintenance, repair, and overhaul market and provides a decision-making tool. This tool can be utilized for determining real options for project valuation of aerospace licensing revenues based on unit costs, recurring costs, and quantity of units sold.