Prob. 1. You must choose between the two projects below. What is the EMV for each? Looking at your own personal Risk Utility Function, which project would you select and why? Please explain and use Excel to solve the problem.

Project 1 has a 70% chance of earning $500,000 and a 30% chance of losing $100,000.

Project 2 has a 20% chance of earning $2 million, a 20% chance of earning $1 million, and a 60 percent chance of losing $500,000.