Q2. A company is considering the purchase of two types of industrial automated machines. The first machine (M1) is a large robot capable of performing a variety of tasks, including welding and painting. The M2 is a smaller and slower machine, but it has all the capabilities of M1. The robots will be used to perform a variety of repair operations on large industrial equipment. A "do nothing" alternative is always there, where no purchases will be made. The market for the repair operation could be either favourable or unfavourable. If the market is favourable M1 is expected to return $50,000 profit and M2 $30,000 profit. If the market is unfavourable M1 is expected to lead to a loss of $40,000 and M2 to a loss of $20,000. a) Construct a payoff matrix showing the three possible alternatives and the associated profits or losses under the two market conditions. b) Showing all calculations and the decision tree (use PrecisionTree), what is the optimum decision based on expected monetary value (EMV), if the probability of a favourable market is 0.6? What is the expected return on this decision