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Mathematics
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Ux(x) = 1.38 - 2.42e^(-x/18500) Uy(y) = 1.605 - 2.53e^(-y/23775) x represents cash flow in year 1 and y represents cash flow in year 2 You are indifferent between: 40% chance of outcome of $26,427.16 for year 1 and 30,379.15 for the Year 2. 60% chance of outcome of $16,723.45 for year 1 and 27,225.52 for the Year 2 and 30% chance of outcome of $34,250.01 for the Year 1 and $13,984.03 for the Year 2 70% chance of outcome of $14,586.47 for year 1 and $34,015.99 for the Year 2.
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