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The owners of a chain of fast - food restaurants spend $26 million installing donut makers in all their restaurants. This is expected to increase
The owners of a chain of fast - food restaurants spend $26 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 6.7%, were the owners correct in making the decision to install donut makers? A. No, as it has a net present value (NPV) of $1.12 million. B. Yes, as it has a net present value (NPV) of $11.2 million. C. No, as it has a net present value (NPV) of $2.24 million. D. Yes, as it has a net present value (NPV) of $6.72 million
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