Mr Gengar purchases a new video game console with a value of $5,000

Subject:EconomicsPrice:4.87 Bought7

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Mr Gengar purchases a new video game console with a value of $5,000. There is a probability of 10% the console will be damaged (and become worthless) within 2 years due to extensive hardcore usage. The game shop provides a warranty service (which costs $600) guarantee a cash refund of $5,000 for any damaged console within 2 years. 

The utility function of Gengar is: U(W) = W0.8

1. Where W denotes the wealth faces by Genfar. Should Gengar purchase this warranty service? Explain.
2. With the aid of a diagram, briefly explain why the indifference curves of a person cannot intercept.