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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
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 $570,000 per year in the discount rate is 7%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? GE O A 5842,902 OB. $743,700 @C. $793,370 D. $405,000
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