Question 8A firm may choose a project with a rapid payback period rather than one with a larger net present value. Discuss the validity of this statement. (2points)

Question 9The internal rate of return represents the rate of interest that recovers the initial investment outlay.Discuss the validity of this statement. (3points)

Question 10In the face of the global financial crisis, Kevin Rudd introduced government guarantees on deposits. Discuss covering at least the following two parts:

1.An introduction/summary of the Government Guarantee.

2.Thegeneralimpact of this policy to the efficient frontier based on the Australian environment.