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QUESTION
The owners of Healthy Eateries spend $28 million installing a new order processing system in all their restaurants.
The owners of Healthy Eateries spend $28 million installing a new order processing system in all their restaurants. The system is expected to increase cash flows by $10 million per year for the next 5 years. If the discount rate is 6.5%, were the owners correct in making this capital investment decision?
