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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
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 cost $2500, but is expected to increase sales by $800 per year over the next 5 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?
Question 31 options:
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18.0%
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12.2%
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There are multiple IRRs for a project of this type
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7.7%
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7.3%
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