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An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 milion. The sponsorship would last for three years and

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An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 milion. The sponsorship would last for three years and is expected to increase cash flows by $570,000 per year. If the discount rate is 7.1%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? O A $838,323 OB $789,010 OG $739,897 OD. $493,131

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