A machine shop owner is attempting to decide whether to purchase a new drill press, a lathe, or a grinder. The return from each will be determined by whether the company succeeds in getting a government military contract. The profit or loss from each purchase and the probabilities associated with each contract outcome are shown in the following payoff table. Compute the expected value for each purchase and select the bestone.

Purchase Drill press Lathe Grinder Contract $40,000 20,000 12,000 No Contract 0.60 $-8,000 ,000 10,000