Question: A restaurant is purchasing a new HVAC system. The purchase includes a 1-year parts and labor warranty for $719.99. The extended warranty covers 80% of

A restaurant is purchasing a new HVAC system. The purchase includes a 1-year parts and labor warranty for $719.99. The extended warranty covers 80% of parts and labor costs, as well as routine maintenance service calls. The HVAC system model averages $2,000 per year in repairs and maintenance fees.

Does the restaurant save or lose money using the warranty for one year?

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