Internal rate of returnPeace of Mind, Inc. (PMI) sells extended warranties for durable consumer goods such as washing machines and refrigerators. When PMI sells an extended warranty, it receives cash up front from the customer, but later PMI must cover any repair costs that arise. An analyst working for PMI is considering a warranty for a new line of big-screen TVs. A consumer who purchases the 2-year warranty will pay PMI $202. On average, the repair costs that PMI must cover will average $104 for each for the warranty's 2 years. If PMI has a cost of capital of 5%, should it offer this warranty for sale?

a. The internal rate of return (IRR) for this project is __%.

Hi can you please show me to IRR formula in a simpler form from what is shown above in the picture, I rather learn it manually rather than using excel.

Homework: Chapter 10 Homework Save Score: 0 of 1 pt 10 of 10 (6 complete) HW Score: 49%, 4.9 of 10 pt P10-19 (similar to) Question Help NPV and IRR Benson Designs has prepare years. The firm has a cost of capital of 15%. View an Example ^ cash inflows of $6,000 per year for 15 A Question Help a. Determine the net present value (NPV) fo b. Determine the internal rate of return (IRR C. Would you recommend that the firm acce NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $38,000, and the project is expected to yield after-tax cash inflows of $10,000 per year for 7 years. The firm has a cost of capital of 16%. a. The NPV of the project is $ - 24055.77. b. The IRR of the project is 59139.75%. (F a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend that the firm accept or reject the project? is the discount rate that equates the NPV of an investment opportunity with $0 (because the present value of cash inflows equals the initial investment). It is the rate of return that the firm will earn if it invests in the project and receives the given cash inflows. Mathematically, the IRR is the value of r that causes NPV to equal $0: CF, t=1 (1 + IRR) The IRR is very difficult to calculate by hand, but can easily be found using a financial calculator or an Excel spreadsheet. Calculator Use To find the Inn in the non Question is complete. Enter your answer in the answer box and t All parts showing Close 1 part I remaining Check