Steve Gentry, the operations manager of Baja Fabricators, wants to purchase a new profiling

machine $($it cuts compound angles on the ends of large structural pipes used in the fabrication

yard$).$ However, because the price of crude oil is depressed, the market for such equipment is

down. Steve believes that the market will improve in the near future and that the company should

expand its capacity. The table below displays the three equipment options he is currently

considering, and the profit he expects each one to yield over a two$-$year period. The consensus

forecast at Baja is that there is about a $30\%$ probability that the market will pick up "soon"

$($within $3$ to $6$ months$)$ and a $70\%$ probability that the improvement will come "later"

$($in $9$ to $12$ months, perhaps longer$).$

$\backslash$table$[[,\backslash$table$[[$Profit from Capacity Investment $($in$],[$Dollars$)]]],[\backslash$table$[[$Equipment$],[$Option$]],\backslash$table$[[$Market picks up$],["$soon$"],[p=0\mathrm{.}30$