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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 $400,000. If it fails, the company will lose $260,000. Wilson Motors is trying to decide whether it should borrow the $260,000 given the current bank loan rate of 14\%. Should Wilson Motors borrow the money if a. the probability of success is 93% ? b. the probability of success is 81% ? c. the probability of success is 74%

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