Question
(1)
You're thinking of starting your own company. As best you can tell, you have about a 8 percent chance of success (having done your due diligence and developing an as-airtight-as-possible plan). If you fail, though, you'll lose everything, which in your case is your entire net worth of $52491. In order for this gamble (for that is what all new ventures are, a gamble!) to break even in expected value terms, what must the future value of your company be at minimum?
Please round to the nearest whole dollar.
[Hint: set up the expected value formula with the expected value equal to zero. You're solving for the payoff, not the expected value.]