Suppose Investor A has $20,000 in his account and derives 4 utiles of utility from his amount and would derive 5 utiles of utility if he had $40,000. He is faced with a choice to invest the $20,000 in a project that has 60% probability of earning a profit of 20,000 and 40% probability of losing $20,000? Is the manager likely to invest in the project?

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