Suppose Fred and Barney have different time discount rates. There are two periods of life: young, and old. Freds present value of receiving a dollar next period is given by $1/(1+r), r=0.25 whereas Barneys value for r is 0.05. Fred and Barney are currently young, living in Colorado, and deciding whether to become marijuana smokers. Suppose all utility is viewed in dollars, and they both value the current (when young) utility of smoking to be $10,000 and they both understand that with probability 0.35, they would develop lung cancer when old (which would involve utility of -$40,000). [note: The scientific evidence on this is mixed, but lets just suppose there is a 0.35 cancer risk].

C.) How large would the loss of utility have to be to ensure neither Barney or Fred becomes a smoker?