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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 $590,000 per year. If the discount rate is 6.7%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? A. $556,872 B. $835,309 OC. $890.996 OD. $946,683 k

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