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The owners of a chain of fast-food restaurants spend $27 million installing donut makers in...

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Finance

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 $10 million per year for the next five years. If the discount rate is 6.7% 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. Yes, as it has a net present value (NPV) of $9 million.
C. No, as it has a net present value (NPV) of -$1 million.
D. Yes, as it has a net present value (NPV) of $14 million.
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