It is possible MIRR will gain acceptance in the delayed manner that NPV gained acceptance over a period of several decades. If this is to be the case,we may see a surge in MIRR applications over the next decade as more financial managers work with this technique especially if the reinvestment rate argument is valid.
B. Use of Advanced Capital Budgeting Methods The same format was used to ask about the use of more specialized methods. In Exhibit 3, it is shown that sensitivity analysis was the most popular tool,followed by scenario analysis. Inflation adjusted cash flows were used by 46.6% of the responding firms on a regular basis.
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