An auto parts company is deciding whether to sponsor a racing team for a cost...
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An auto parts company is deciding whether to sponsor a racing team for a cost of $1 million. The sponsorship would last for three years and is expected to increase cash flows by $580,000 per year. If the discount rate is 6.8%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A. $720,636 OB. $768,678 OC. $816,720 OD. $480,424
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