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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 $9 million per year for the next five years. If the discount rate is 6.1%, were the owners correct in making the decision to install donut makers? O A. No, as it has a net present value (NPV) of - $1 million. O B. Yes, as it has a net present value (NPV) of $6 million. O C. Yes, as it has a net present value (NPV) of $11 million. OD. No, as it has a net present value (NPV) of - $2 million
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