Joe just received a $2,000 commission check from his employer on the 21st of December, bringing his total income up to $49,000 for the year. His marginal tax rate for federal income tax is 35%. His state income tax is 4% and the local income tax is 1%. The FICA tax rate is 8%. How much of the commission will Joe have left over to spend on Christmas presents. That is, how much of that commission does he get to keep? Assume that commissions are taxed as ordinary income and subject to the marginal tax rates. (No dollar signs, commas or decimals)

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?