Internal rate of return, Internal rate of return- PMI the

Internal rate of return

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Internal rate of return- PMI the company is considering a warranty for a new line of TV's. A consumer who purchases the 2-year warranty will pay $200 to PMI co. On average the repair cost that PMI must cover will average $106.00 each year for the 2 years. If PMI co. Has cost of capital of 7%, should it offer this warranty for sale?

Reference no: EM13741386

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Internal rate of return : Internal rate of return- PMI the company is considering a warranty for a new line of TV's. A consumer who purchases the 2-year warranty will pay $200 to PMI co. On average the repair cost that PMI must cover will average $106.00 each year for the 2 y..

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