Final answer:
Henrietta should carefully evaluate the reliability of her new $600 television, the cost of potential repairs, and the overall benefits of an extended warranty before deciding to purchase it for $150. If the TV is of high quality and reliability, the additional warranty may not be necessary.
Step-by-step explanation:
When advising Henrietta on whether to purchase the extended warranty for her new television, there are several factors to consider. The initial warranty covers the first year, indicating the manufacturer has a degree of confidence in their product. Extended warranties or service contracts are additional costs where the seller agrees to repair or replace the TV should issues arise in a specified time. For large purchases like a television, it can be appealing as it offers peace of mind. However, the decision should be based on the reliability of the product, the cost of potential repairs, and the price of the warranty itself.
If the television is a high-quality, reliable item, the likelihood of needing repairs within the extended timeframe might be low. In that case, paying $150 for an extended warranty may not be cost-effective. Moreover, the business model for many electronics suggests that repair costs can often exceed the cost of replacement over time due to continuous technological advancements and decreasing prices for new models.
As Henrietta's financial advisor, one would also need to weigh the environmental aspect, as repairing and maintaining existing electronics can be more environmentally friendly than replacing them. If the television is designed to be durable and repairable, it may be well worth maintaining it over many years.