Ms. Sen has a von Neumann-Morgenstern utility function given by U = 1-(1/M), where M is the present value of her lifetime income. If Ms. Sen becomes a teacher, she will make M=5 with probability 1. If she becomes an actress, she will make M=400 if she becomes a star, but only M= 2 if she fails to become a star. The probability of her becoming a star is 0.01. Mr. Ghatak is an infallible judge of acting talent. After a brief interview, he can state with certainty whether Ms. Sen will become a star if she chooses to pursue a career in acting. What is the most she would be willing to pay for this information? [6+10