Spartan Skateboards, Inc., is considering buying a new piece of equipment that will quickly imprint Spartan's image on the top of the skateboard. The equipment will be in service for $6$ years and cost $$2500.$ However, once purchased $($today$),$ it is expected to increase sales by $$800$ per year over the first $3$ years and decrease costs by $$800$ per year for the following $3$ years. There is no additional Net Working capital needed, nor will the equipment have any salvage value. The owner of the shop requires a return of $8\%.$ What is the Internal Rate of Return? $[$Hint: sale increase and cost decrease are equivalent in the sense that they all lead to positive cash inflows from this new equipment use.$]$

Question $12$ options:

There are multiple IRRs for a project of this type

$18\mathrm{.}0\%$

$23\%$

There is not enough information to perform the calculation

$12\mathrm{.}2\%$