Business, 06.06.2020 21:59, natalieagustinlop54

The owners of a chain of fast-food restaurants spend $25 million installing donut makers in all their restaurants. This is expected to increase cash flows by $11 million per year for the next five years. If the discount rate is 5.3%, were the owners correct in making the decision to install donut makers. Explain?A) No, as it has a net present value (NPV) of −$2 million. B) Yes, as it has a net present value (NPV) of $11 million. C) No, as it has a net present value (NPV) of −$4 million. D) Yes, as it has a net present value (NPV) of $18 million.

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The owners of a chain of fast-food restaurants spend $25 million installing donut makers in all thei...