Question: Define DCFROR Explain the difference between an Economic Evaluation and a Financial Analysis. What is the difference between the internal rate of return method and

    1. Define DCFROR
    2. Explain the difference between an Economic Evaluation and a Financial Analysis.
    3. What is the difference between the internal rate of return method and the DCFROR?
    4. Explain how the DCFROR method takes into account the time value of money.
    5. Explain how the DCFROR and NPV methods are related.
    6. Explain why Companies tend to evaluate projects using the stand alone method.
    7. Explain why it is important to perform sensitivity analyses.
    1. List at least five process parameters that should be considered in a sensitivity analysis.

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