Benefits of Borrowing. Wilson Motors is looking to expand 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%?