Internal rate of return. ABC firm sells extended warranties for its washing machines. When ABC sells the warranty, it receives cash upfront, but later ABC must cover any repair costs that arise. ABC is considering a warranty for a new line of TVs. A consumer who purchases the 2-year warranty will pay ABC $200. The repair costs that ABC must cover will average $106 for each of the warranty's 2 years. If ABC has a cost of capital of 7%, should it offer this warranty for sale?