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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 cash flows
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 $10 million per year for the next five years. If the discount rate is 5.7%, 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. No, as it has a net present value (NPV) of $2 million. C. Yes, as it has a net present value (NPV) of $10 million. D. Yes, as it has a net present value (NPV) of $16 million
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