$37.$

The owners of a chain of fast$-$food restaurants spend $$24$ million installing donut makers in all their restaurants. This is expected to increase cash flows by $$9$ million per year for the next five years. If the discount rate is $5\mathrm{.}4\%,$ were the owners correct in making the decision to install donut makers?

A$.$ Yes, as it has a net present value $($NPV$)$ of $$15$ million.

B$.$ No$,$ as it has a net present value $($NPV$)$ of $-$$$1$ million.

C$.$ No$,$ as it has a net present value $($NPV$)$ of $-$$$3$ million.

D$.$ Yes, as it has a net present value $($NPV$)$ of $$9$ million.