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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 $550,000 per year. If the discount rate is 7.2%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A. $438,116 OB. 5657,174 OC $744,797 OD. $700,985 11

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