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Sites Problem 2: (10 marks) Mr. Ben faces a 20% chance of having a fire that will reduce his net worth to $1000, a 25% chance that fire will reduce it to $4,000, and a 55% chance that nothing detrimental will happen, so that his business will retain its worth of $20,000. What is the maximum amount he will pay for insurance if his utility is provided by U(W)=LN(W) where LN stands for the natural logarithm. Problem 3: (25 marks) As the CFO of Tucal Inc., you are confronted to the following two mutually exclusive projects