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An auto - parts company is deciding whether to sponsor a racing team for a cost of $ 2 5 8 1 0 6 2

An auto-parts company is deciding whether to sponsor a racing team for a cost of $2581062.
The sponsorshipwould last for 10 years and is expected to have cash flows by $455632 per
year. If the discount rate is 11.05%, what willbe the change in the value of the company if it
chooses to go ahead with the sponsorship?
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