I am studying project management using excel and I'm confused by this question.

Assume that U(M) = e^(M/50)- 1 for a given company.Also assume that similar to the lecture example you have 2 options as:

Option A:Guaranteed to make $M

Option B:M % chance you get $100 and (100 - M)%chance you make $0.

For this company with the utility curve given above:

1.Determine empirically (i.e. in equation form) what the company's Utility for option A and option B are as a function of M.

2.Is this company risk-averse, risk-seeking or risk neutral and why?

3.For M = $40, calculate U_Aand U_B.Which option would this company select?Why?

4.For M = $70, calculate U_Aand U_B.Which option would this company select?Why?

5.For this company, $70 guaranteed has the same utility as what value of M?To this, you could do it by trial and error or recommendation is to use goal seek.