9. Firm A is about to embark on a risky development project that offers a .2 chance of a S4 million profit and a .8 chance of a S0 profit. Unexpectedly, firm B proposes a joint venture. In return for B's expertise, firm B will receive 25 percent of the profit (25 percent of either 4 million or 0 will go to firm B and the remainder will go to firm A). With firm B aboard, the chance of success is expected to rise to .25. After much deliberation, firm A decides to turn down the joint venture and continue on its own. Two years pass, and firm A has overcome most of the development hurdles. The estimated chances of success are now .8. Now firm C offers to pay firm A S3 million for turning over all rights (and profits) concerning the development project to itself. Deciding to take the sure S3 million, firm A now sells out. Show that whatever firm A's attitude toward risk, the pair of decisions just outlined are contradictory. Show that no value of u is consistent with the firm's choices