$5$ An investor has the choice to accept a guaranteed $$10$ million cash inflow or an option

with the following expectations:

A $5\%$ chance of receiving $$30$ million

A $10\%$ chance of receiving $$25$ million

A $10\%$ chance of receiving $$20$ million

A $10\%$ chance of receiving $$15$ million

A $5\%$ chance of receiving $$10$ million

A $30\%$ chance of receiving $$7\mathrm{.}5$ million

A $30\%$ chance of receiving $$5$ million

Assume the risk$-$adjusted rate of return is $12\%$ and the risk$-$free rate is $3\%.$

What is the certainty equivalent of this investment?

What would you choose? Why?