Question 9 A corporate CFO insists on making decisions using a payback period decision rule, pursuing all projects that pay back within five years. Which of the following are Not yet valid financial reasons for firing the CEO? answered Select all the correct responses. Marked out of 1.00 Flag a. The payback period after the negative cash flow from the old CFO's severance package combined with the positive net cash flow from a lower compensation package for the question new CFO is less than five years. b. While the new CFO demands higher compensation than the old one, the new CFO makes better project funding decisions. The overall NPV of these two effects is positive. O c. The new CFO has a better understanding of accounting and is able to maximise the bottom line on the firm's income statement. d. The new CFO is a well-known Redditer on /r/WallStreetBets who assures you that the stock will go "to the moon" and "tendies" will be acquired by all. When you challenge his assertion that market prices no longer need to reflect underlying business fundamentals, he replies with "strange justifications" you have never heard before like "Apes Together Strong" if they "hold the line" with their "diamond hands". O) e. The new CEO is better at maximising cash flows, although doing so often comes with tremendous risk. Question 10 Your firm is going to hire a prominent senior citizen Instagram influencer to help market its line of canned baked beans. The two candidates, Janet and Rita, both offer a three-year Not yet contract. However, the annual payments in the contracts differ. You have a project discount rate, and you expect both influencers to be equally effective at selling beans. Which of the answered following decision rules for selecting the most cost effective influencer would yield a financially correct decision if you were to follow it? Marked out of 1.00 Select all the correct responses. Flag question D a. Net present value decision rule "b. Equivalent annual annuity decision rule c. Payback period decision rule d. Internal rate of return decision rule We. Better influencer name decision rule