Question

Jenna isn’t sure if she should buy an extended warranty for her new laptop. Use the PACED decision-making process to help her decide. Here is some information you will need to know: The laptop costs $950, and the cost of the extended warranty is $99. The extended warranty covers everything for five years. Under the extended warranty, the repairs may be done at a local store. Otherwise, the laptop will need to be sent to the manufacturer for repairs. The laptop comes with a one-year limited warranty. Repairs may cost anywhere between $50 and $450.

Answer 1

Problem: 
Buy extended warranty for $950 laptop or not?

Alternative:
1) Buy extended warranty
2) Not buy extended warranty

Criteria:
Practical and cost saving in the long-run

Evaluate Alternatives:
1) Buy extended warranty 
       con: pay additional $99. 
       pro: 5 year warranty coverage. 
       pro: repairs may be done at a local store

2) Not buy extended warranty
       pro&con: laptop comes with one-year limited warrant
       pro: no additional payment
       con: repairs will be done by manufacturer 
       con: repair costs range from $50 to $450

Decision:
BUY EXTENDED WARRANTY