Question: i Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 33% Rounded Depreciation


i Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 33% Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 20% 14% 45% 32% 25% 15% 19% 18% 12% 12% 12% 9% 5% 9% 9% 10 years 10% 18% 14% 12% 9% 8% 7% 4% 6% Print Done in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) pe Tat Year ew Earnings before depreciation, interest, and taxes New grinder Existing grinder $43,000 $26,900 43,000 24,900 43,000 22,900 43,000 20,900 43,000 18,900 on WN Print Done Enter any number in the edit fields and then continue to the next question. Internal rate of return Peace 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 $207. On average, the repair costs that PMI must cover will average $103 for each for the warranty's 2 years. If PMI has a cost of capital of 7%, should it offer this warranty for sale? The internal rate of return (IRR) for this project is %. (Round to two decimal places.) The NPV of this project is $ (Round to two decimal places.) If PMI has a cost of capital of 7%, should it offer this warranty for sale? (Select the best answer below.) O A. With a cost of capital of -0.32% and an IRR of 7%. PMI should reject this project OB, with a cost of capital of 7% and an IRR of -0.32% and a NPV of $20.77. PMI should accept this project OC. With a cost of capital of 7% and an IRR of -0.32%, and and NPV of $20.77. PMI should reject this project. OD. With a cost of capital of -0.32% and an IRR of 7%, PMI should accept this project
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