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A company estimates that 8% of their products will feel after the original warranty period but within two years of the purchase, with a replacement
A company estimates that 8% of their products will feel after the original warranty period but within two years of the purchase, with a replacement cost of $500. If they want to offer a 2 year extended warranty, what price should they charge so they'll break even (in other words, so the expected value will be 0)
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