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 for Spartan Skateboards, Inc.'s new equipment purchase?
A) There are multiple IRRs for a project of this type
B) There is not enough information to perform the calculation
C) 23%
D) 12.2%
E) 18.0%
