The owners of a chain offast-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 5.4%, were the owners correct in making the decision to install donutmakers?

A.

Yes, as it has a net present value(NPV) of $10 million.

B.

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

C.

Yes, as it has a net present value(NPV) of $17 million.

D.

No, as it has a net present value(NPV) of $2 million.