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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

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 $12 million per year for the next five years. If the discount rate is 5.9%, were the owners correct in making the decision to install donut makers?

A.Yes, as it has a net present value (NPV) of $16 million.

B.Yes, as it has a net present value (NPV) of $27 million.

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

D.No, as it has a net present value (NPV) of $5 million.

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