Wilson Motors is looking at expanding its operations by adding a second manufacturing location. If successful, the

Question:

Wilson Motors is looking at expanding its operations by adding a second manufacturing location. If successful, the company will make $450,000. If it fails, the company will lose $250,000. Wilson Motors is trying to decide if it should borrow the $250,000, given the current bank loan rate of 15%. Should Wilson Motors borrow the money if
a. The probability of success is 90%?
b. The probability of success is 80%?
c. The probability of success is 70%?