7. Will Power has been saving his money and has decided to purchase a brand new flat screen TV from Better Buy Electronics. The TV will cost Will $8,000. The salesperson has also offered Will a two-year warranty, at a cost of $600. With this warranty, if the TV fails within the next two years, the TV will be replaced free of charge at the moment of failure. For simplicity sake, let's assume that the cost of the TV will not change over the next two years, and we'll also assume a force of interest of 5%. Historical data has suggested that the force of mortality for similar TVs of this brand is constant, at 0.02 in the first year, and 0.05 in the second year. a. Determine the expected present value of the warranty benefits. (4 marks) b. Is Will paying too much or too little for the two-year warranty? Explain. (2 marks)