Ray Retail is considering an investment in a delivery truck. Ray has found a used truck that he can purchase for $8,000. He estimates the truck would last six years and increase his store's net cash revenues by $2,000 per year. At the end of six years, the truck would have no salvage value and would be discarded. Ray will depreciate the truck using the straight-line method.

Refer to Ray Retail. What is the payback period on the investment in the new truck?

Select one:

a. 2 years

b. 6 years

c. 4 years

d. 12 years