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Wilson Motors is looking to expand its operations by adding a second manufacturing laocation. If it is successful, ghe company will make $400,000. If it
Wilson Motors is looking to expand its operations by adding a second manufacturing laocation. If it is successful, ghe 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 of 14%. Should wilson motors borrow the money if
a. the probability of success is 89%?
b. the probability of success is 79% ?
c. the probability of success is 74% ?
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