An auto-parts company is deciding whether to sponsor a racing team for a cost of $2735942. The sponsorship would last for 11 years and is expected to have cash flows by $375129 per year. If the discount rate is 7.88%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?

The correct answer is -42,248.60 but could you provide a step-by-step description on how to arrive at this answer?