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1.Suppose you have developed an idea that can potentially lead to a software design which will generate $1 million of revenue. However, the success rate
1.Suppose you have developed an idea that can potentially lead to a software design which will generate $1 million of revenue. However, the success rate is only 30%, i.e. there is a 70% chance of failure which will result in zero revenue. The cost of fully developing the idea is $50,000. Let's assume that you have $60,000 in asset, and your utility function is U(x) = (x). If a company offers you $100,000 for your idea, would you sell it or would you develop the idea on your own?
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