m X Question SWO provides a ten-year warranty with all equipment sales. The warranty covers all defects and breakdowns that are not directly related to regular wear and tear. Based on the experience, SWO estimates the probability of an equipment making a warranty claim during the next 10 year of coverage is as follows: Year 1 2 3 4 5 6 7 8 9 101%2% 2% 5% 5% 10% 12% 15% 18% 20% The average retail value per claim is $100 currently and increases by 3% every year. The average cost of parts and service at SWO is about 60% of the retail value. The effective interest rate is 6% ***Calculate the PV of warranty