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Internal rate of return Peace of Mind, Inc. (PMI) sels extended warrantles for durable consumer goods. When PMi solls an extonded wartanty, it recelves cash

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Internal rate of return Peace of Mind, Inc. (PMI) sels extended warrantles for durable consumer goods. When PMi solls an extonded wartanty, it recelves cash up front, but later. PMI must cover any repar costs that ariso. An andyst working for PMI is considering a wartanty for a new lino of big-scteen TVs. A consumer who purchases the 2 -year warranty wil pay PMI $206. On average, the repair costs that PMI must cover wil average $104 for each for the warranty/s 2 years. If PMI has a cost of capital of 6%, should it sell this warranty? The internal role of rotum (RR) for thin project is 6. (Round to two decimal places.)

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