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The owners of a chain of fast - food restaurants spend $ 2 5 million installing donut makers in all their restaurants. This is expected
The owners of a chain of fastfood restaurants spend $ million installing donut makers in all their restaurants. This is expected to increase cash flows by $ million per year for the next five years. If the discount rate is were the owners correct in making the decision to install donut makers?
A Yes, as it has a net present value NPV of $ million.
B Yes, as it has a net present value NPV of $ million.
C No as it has a net present value NPV of $ million.
D No as it has a net present value NPV of $ million.
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