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A company estimates that 4% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement

A company estimates that 4% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they want to offer a 2 year extended warranty, what price should they charge so that they'll break even (in other words, so the expected value will be 0)

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