. (10 points) You own and operate a profitable indoor sports facility and are considering renovating an unused part of the facility to sell athletic clothing (shorts, t-shirts, socks, etc.). You expect that the shop would generate sales of $100,000 a year for three years. The costs of labor and the athletic clothing would be $40,000 and $42,000 per year respectively. Renovating the space would require you to purchase shelving for the clothing. That would cost $10,000 (fullydepreciable straight-line over five years). You expect that you would be able to sell the shelving at the end of three years for $2,500. If you dont use the space to sell athletic clothing you could rent it out to a local Taco shop that wants to open a location within your facility. They have offered to pay $11,000/year in rent. If your tax rate is 38%, what is the IRR of this investment?