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

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%?

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