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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 $4,334,316. The sponsorshipwould last for 9 years and is expected to have cash flows by $398,554 per year. If the discount rate is 10.72%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?

Reference no: EM133114085

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