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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

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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 $560,000 per year. If the discount rate is 6%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A. $745.330 B. $795,019 C. $496,887 D. $844,707

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