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Change in the value of the company

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An auto-parts company is deciding whether to sponsor a racing team for a cost of $1.1 million. The sponsorship would last for three years and is expected to increase cash flows by $600,000 per year. If the discount rate is 7.9%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?

Reference no: EM132504080

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