1. To use the IRR method, it is important to have the following information:
   1. The initial cost of the investment, the useful life and the annual cost savings (net cash flow) and the minimum required rate of return for the project.
   2. The initial cost and useful life.
   3. The initial cost and annual savings (net cash flow).
2. If a project has a negative NPV a company should:
   1. Proceed with the project because inflows will exceed the outflows.
   2. Pass on the project because the outflows will exceed the inflows.
   3. Proceed with the project as it will show a return on your initial investment.
3. The initial purchase price of the new stitcher machine purchased by ABC Sewing Company is $45,000. If we assume an additional $15,000 in sales, and a net annual cash flow of $9,000, how many years will it take to get back our initial investment?
   1. 5 years
   2. 2 years
   3. 3 years