You Are Offered a Chance to Buy a Ticket in a Lottery

Multiple Choice

You are offered a chance to buy a ticket in a lottery. You have a one in ten chance of winning this lottery. If you win, your name will be entered along with 399 other winners as an entrant in a second lottery. All the entrants in the second lottery have an equal chance of winning the single prize, a sportscar valued at $400 000. What is the most it would be rational for you to pay for a ticket in the first lottery?

A) $10
B) $40
C) $100
D) $400
E) $1 000