Question: how i can solve this problem ? You must decide whether to buy new machinery to produce product X or to modify existing machinery. You

how i can solve this problem ?

how i can solve this problem ? You must decide whether to

You must decide whether to buy new machinery to produce product X or to modify existing machinery. You believe the probability of a prosperous economy next year is 0.6 and of a recession is 0.4. The applicable payoff table of prots (+) and losses (o) is: M: Ptospetity (3) ha: Recession (S) A. (Buy new) +9501\") \"2(1).\" A3 (Modify) + 7M.\" + 30mm a) Use the method of decision making under risk to calculate the expected value out from the alternatives Al and A2.Which alternative should be chosen? (20 Points}

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