You are the author of what promises to be a successful novel. You have the option to either
publish the novel yourself or through a publisher. The publisher is offering you $20,000
for signing the contract. If the novel is successful, it will sell 200,000 copies. If it isn’t,
it will sell only 10,000 copies.The publisher pays a $1 royalty per copy. A market survey
by the publisher indicates that there is a 70% chance that the novel will be successful. If
you publish the novel yourself, you will incur an initial cost of $90,000 for printing and
marketing, but each copy sold will net you $2