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Author Question: An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 million. The ... (Read 100 times)

lindiwe

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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 $580,000 per year. If the discount rate is 7.5%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?
◦ $508,305
◦ $740,000
◦ $863,000
◦ $808,786


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Marked as best answer by lindiwe on Jul 9, 2019

kardosa007

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lindiwe

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Reply 2 on: Jul 9, 2019
YES! Correct, THANKS for helping me on my review


bblaney

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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