he owners of a chain of fast-food restaurants spend

$30

million installing donut makers in all their restaurants. This is expected to increase cash flows by

$11

million per year for the next five years. If the discount rate is

5.3%,

were the owners correct in making the decision to install donut makers?

A.No, as it has a net present value (NPV) of

$3

million.

B.Yes, as it has a net present value (NPV) of

$17

million.

C.No, as it has a net present value (NPV) of

$2

million.

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

$10

million.