Although the modified internal rate of return (MIRR) method has wide appeal to academics, most business executives prefer to use the net present value (NPV) method to evaluate capital budgeting projects.

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This statement is generally true. While the MIRR method may have advantages in certain situations, the NPV method is still the most commonly used and widely accepted approach to capital budgeting. NPV takes into account the time value of money and provides a clear indication of the potential profitability of a project.

Although the Modified Internal Rate of Return (MIRR) Method Has