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Spartan Skateboards, Inc., is considering buying a new piece of equipment that will quickly imprint Sparty's image on the top of the skateboard. The equipment
Spartan Skateboards, Inc., is considering buying a new piece of equipment that will quickly imprint Sparty's image on the top of the skateboard. The equipment will cost $2500, but is expected to lead to increased sales of $750 each year over the next 4 years (750 in year 1, 750 in year 2, etc.). 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%. Using the NPV method (not Payback Period), should the machine be purchased? Also calculate IRR, as that is what Question 5 will ask] Multiple Choice 0 o Yes 0 0 There is not enough information to make a determination
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