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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 cash flows by $590,000 per year of the discount rate is 7.4%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A $537,100 OB. 5805,650 C. $913,070 OD 5859,360

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