In this paper, we propose a capital budgeting model under uncertainty in which cash flow information is specified as a special type of fuzzy number—triangular fuzzy numbers. We then estimate the present worth of each fuzzy project cash flow. Using the present worth criterion, we propose a new project dominance method to determine the preference of fuzzy projects. To select fuzzy projects under limited capital budget, a branch and bound procedure is suggested. To illustrate the procedure, we give a numerical example and compare and analyze the results of the capital rationing problem using the proposed dominance method and two other conventional dominance methods.