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An auto-parts company is deciding whether to sponsor a racing team for a cost of...

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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 $560,000 per year. If the discount rate is 6.2%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A. $491,365 B. $835,320 C. 5737.047 D. $786,184

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