Provide a clear, rigurous and concise answer to the following questions using the analytical framework learned in class to justify your conclusion:
A new entrepreneur is planning to buy a downtown office. The sale price is $100,000, and all real state specialists agree that this price will remain the same or even rise over the next five years. At the same time the entrepreneur is quitting his 20-year government job to start this new project, and he predicts that his expected future income will be similar to the one he is quitting, but there is a 30% chance that things will go wrong.
1. Will the entrepreneur buy the new office? Will the entrepreneur change your current consumption once he changes jobs?