1. Cash flow refers to the amount of money a company has available for the purchase of equipment and other ex- penses. 2. Cash flow should be a primary consid- eration when deciding whether or not to purchase a piece of equipment. 3. The payback method is used to cal- culate how long it takes for the finan- cial benefits of a piece of equipment to equal the cost of the equipment. 4. The time value of money refers to the time frame within which you spend a certain amountofmoney. 5. IRR, for the purposes of deciding whether or not to buy equipment, stands for: a. Internal Revenue Review b. Internal Rate of Return c. Intellectual Research Retreat