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You are earning a salary of $40,000 a year and your position is steady. However,...

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Basic Math

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You are earning a salary of $40,000 a year and your position is steady. However, you have an opportunity to start your own business. You have done the research and it has shown that starting your own company gives you a 20% chance of earning $200,000 a year, a 40% chance of earning $100,000 a year, and a 40% chance of complete failure. What is the expected value of giving up your $40,000 salary and starting your own business? $80,000 $40,000 $10,000 $500,000

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