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Benefits of borrowing. Wilson Motors is looking to expand its operations by adding a second manufacturing location. If it is successful, the company will make

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Benefits of borrowing. Wilson Motors is looking to expand its operations by adding a second manufacturing location. If it is successful, the company will make $430,000. If it fails, the company will lose $300,000. Wilson Motors is trying to decide whether it should borrow the $300,000 given the current bank loan rate of 12%. Should Wilson Motors borrow the money if a. the probability of success is 88%? b. the probability of success is 85%? c. the probability of success is 69%

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