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An auto - parts company is deciding whether to sponsor a racing team for a cost of $ 1 0 0 0 0 0 .

An auto-parts company is deciding whether to sponsor a racing team for a cost of $100000. The sponsorship would last for 5 years and is expected to increase cash flows by $400000 per year. If the discount rate is 5%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? Round answer to the third decimal space.

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