Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, while 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.

Decision

Low

Medium

High

Basic Model

$$75,000$

$$95,000$

$$120,000$

Advanced Model

$$60,000$

$$150,000$

$$260,000$

Given the uncertainty associated with the demand volume and no other information to work with, how would you make a decision?Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, while 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.

Decision

Low

Medium

High

Basic Model

$$75,000$

$$95,000$

$$120,000$

Advanced Model

$$60,000$

$$150,000$

$$260,000$

Given the uncertainty associated with the demand volume and no other information to work with, how would you make a decision?