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QUESTIONS "An auto parts company is deciding whether to sponsor a racing team for a cost of $50000. The sponsorship woul
Posted: Thu Dec 23, 2021 9:10 am
by answerhappygod
- Questions An Auto Parts Company Is Deciding Whether To Sponsor A Racing Team For A Cost Of 50000 The Sponsorship Woul 1 (26.39 KiB) Viewed 92 times
QUESTIONS "An auto parts
company is deciding whether to sponsor a racing team for a cost of $50000. The sponsorship would last for 6 years and is expected to increase cash flows by $10000 per year. If the discount rate is 8.8%, what will be the change in the value of the
company if it chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
QUESTION 10 "The owners of a chain of fast-food restaurants spend $700000 installing donut makers in all their restaurants. This is expected to increase cash flows by $200000 per year for the next 5 years. The discount rate is 7%. What is the net present value of installing the donut makers? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."