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The owners of a chain of fast-food restaurants spend $27 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 $27 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 5.7%, were the owners correct in making the decision to install donut makers? 0 A. No, as it has a net present value (NPV) of-$5 million. ? B. Yes, as it has a net present value (NPV) of $24 million. C. No, as it has a net present value (NPV) of-$2 million. 0 D. Yes, as it has a net present value (NPV) of $14 million
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