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?

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? There is not enough information to perform the calculation 12.2% 23% There are multiple IRRs for a project of this type 18.0%