Benefits of borrowing Wilson Motors is looking to expand its operations by adding a second manufacturing location. If it

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Benefits Of Borrowing Wilson Motors Is Looking To Expand Its Operations By Adding A Second Manufacturing Location If It 1 (11.71 KiB) Viewed 11 times

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 $450,000. 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 13%. Should Wilson Motors borrow the money if a. the probability of success is 88%? b. the probability of success is 82%7 c. the probability of success is 68 % 7 a. What is the expected profit (or loss) of the project if the the probability of success is 88% 7 (Round to the nearest dollar. Enter a negative number for a loss)