Purchase	Contract 0.60	No Contract 0.40
Drill Press	$40,000	$-6,000
Lathe	$30,000	$8,000
Grinder	$20,000	$12,000

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 best option of purchase.