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Wilson Motors is looking to expand its operations by adding a second manufacturing location. If it is successful, the company will make $460,000. If it
Wilson Motors is looking to expand its operations by adding a second manufacturing location. If it is successful, the company will make $460,000. If it fails, the company will lose $290,000. Wilson Motors is trying to decide whether it should borrow the $290,000 given the current bank loan rate of 17%. Should Wilson Motors borrow the money if a.the probability of success is 89%? b.the probability of success is 78%? c.the probability of success is 72%?
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