Introduction
Introduction
to to
Business
to
Business
Business
Finance
Finance
Finance
––
WGU
–
WGU
WGU
D775
D775
D775
Study
Study
Study
Guide,
Guide,
Guide,
Financial
Financial
Financial
Management
Management
Management
& Corporate
& Corporate
& Corporate
Finance
Finance
Finance
Exam
Exam
Exam
Review
Review
Review
2026
2026
2026
(Author_
(Author_
(Author_
Not
Not
specified).pdf
Not
specified).pdf
specified).pdf
Introduction to Business Finance –
WGU D775 Study Guide, Financial
Management & Corporate Finance
Exam Review 2026 (Author: Not
specified)
Introduction
Introduction
Introduction
to to
Business
to
Business
Business
Finance
Finance
Finance
––
WGU
–
WGU
WGU
D775
D775
D775
Study
Study
Study
Guide,
Guide,
Guide,
Financial
Financial
Financial
Management
Management
Management
& Corporate
& Corporate
& Corporate
Finance
Finance
Finance
Exam
Exam
Exam
Review
Review
Review
2026
2026
2026
(Author_
(Author_
(Author_
Not
Not
specified).pdf
Not
specified).pdf
specified).pdf
,Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf
Payback Period The amount of time required for an investment to generate enough cash
inflows to recover its initial cost.
Internal Rate of Return (IRR) The discount rate that makes the NPV of an investment equal to zero,
representing the expected annual rate of return for a project.
NPV Decision Rule Accept a project if NPV > 0 (profitable); reject if NPV < 0 (results in a loss).
Net Present Value (NPV) A tool to evaluate project profitability by comparing the present value of
expected returns against costs, essentially acting as a cost-benefit analysis
that accounts for the time value of money.
Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf
, Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf
Inflation The increase in prices over time, which decreases the purchasing power of
money.
PVIFA (Present Value Interest Factor for an Annuity) The factor used to calculate the present value of a series of equal payments.
FVIF (Future Value Interest Factor) The factor used to calculate the future value of a single lump sum.
Annuity A fixed series of equal payments made at regular intervals over a specific
period.
Risk The uncertainty associated with the potential return on an investment.
Compounding Frequency The rate at which interest is calculated and added to the principal. Higher
frequency leads to faster investment growth.
Future Value of an Annuity The total value of a series of equal payments made at regular intervals,
representing the worth of those payments at a future date including interest
growth.
Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf Introduction to Business Finance - D775.pdf