Nicci denny, age 40, single, and from colorado springs, colorado, is trying to estimate the amount she needs to save annually to meet her retirement needs. nicci currently earns $75,000 per year. she expects to need 80 percent of her current salary to live on at retirement. nicci anticipates receiving about $1,600 per month in social security benefits at age 65. using the run numbers worksheet, answer the following questions. round your answers to the nearest dollar.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?