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Hans decides to borrow the money instead of using his saving

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Hans is trying to decide whether or not to expand his troll doll factory. If he expands he will increase his profits by 6%. It will cost him $1.5 million to expand. Currently the interest rate is 4.2%. Should he expand his factory? Explain your answer.

Hans decides to borrow the money instead of using his savings. Does this change your answer? Knowing nothing else will Hans be better off borrowing the money?

Reference no: EM132405627

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