A typical feature of investments is:

Select one:

a. that normally a relatively large cash outlay is required initially, but returns are received over a short period of time.

b. they rarely span long periods of time.

c. they often require large amounts of resources.

d. they are risk free.

The Pizza Place is considering investing $80 000 in a new pizza oven. If it is estimated that, as a result of the investment, net cash inflow will increase by $21 000 p.a. for 6 years, the payback period for the oven is:

Select one:

a. 5 years.

b. 6 years.

c. 3.8 years.

d. 4 years.