The Pizza Place is considering investing $90 000 in a new pizza oven. If it is estimated that, as a result of the investment, net cash inflow will increase by $20 000 p.a. for 6 years, the payback period for the oven is:

Select one:

a. 5 years.

b. 4 years.

c. 6 years.

d. 4.5 years.

Capital investment decisions don't usually require a payment up-front.

Select one:

True

False

The net present value approach involves cash flows related to the investment being brought back to their respective present values using an appropriate discount rate.

Select one:

True

False