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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

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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 cast flows by $570,000 per year. If the discount rate is 7.8%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? O A $758,820 OB. $806,246 OC $474,263 OD. $711,394

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