Question: Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs

Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Demand Volume Decision Low Medium High Basic model $80,000 $110,000 $180,000 Advanced model $45,000 $115,000 $215,000 A forecasting study determines that he probabilities of demand volume are: Low = 0.3, Medium = 0.4, and High = 0.3. Compute the expected value of perfect information (EVPI). Round your answer to the nearest dollar. $ ________

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