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

Question 9The internal rate of return represents the rate of interest that recovers the initial investment outlay.Discussthe 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 followingtwoparts:

1.An introduction/summaryof the Government Guarantee.

2.Thegeneralimpact of this policy to the efficient frontierbased on the Australianenvironment.