WGU D775 Objective Assessment (NEW 2026/ 2027 Update) Review Questions & Answers | Grade A| 100% Correct (Verified Solutions)

WGUl D775l Objectivel Assessmentl (NEWl
2026/l 2027l Update)l Reviewl Questionsl &l
Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)

QUESTION
Compoundingl frequency

Answer:
Interestl ratel dividedl byl time



QUESTION
Higherl interestl rates

Answer:
Higherl futurel valuesl andl lowerl presentl values



QUESTION
Netl presentl valuel (NPV)

Answer:
Evaluatel profitabilityl ofl al project



QUESTION
NPVl ofl -$1,000

Answer:
Itl shouldl bel rejected

,QUESTION
NPVl =l 0

Answer:
Projectl earnsl requiredl returnl only



QUESTION
Benefitl ofl NPV

Answer:
Usesl alll cashl flowsl andl considersl TVM



QUESTION
Limitationl ofl NPV

Answer:
Reliesl onl accuratel cashl flowl estimates



QUESTION
Internall Ratel ofl Returnl (IRR)

Answer:
Returnl thatl makesl NPVl =l 0



QUESTION
IRRl rule

Answer:
Acceptl al projectl whenl IRRl >l requiredl return



QUESTION
Limitationl ofl IRR

,Answer:
Reinvestsl atl unrealisticl IRRl rates



QUESTION
Interpretationl ofl IRR

Answer:
Higherl IRRl =l morel attractivel investment



QUESTION
Paybackl period

Answer:
Timel itl takesl tol recoverl investment



QUESTION
Paybackl periodl longerl thanl cutoff

Answer:
Itl shouldl bel rejected



QUESTION
Advantagel ofl paybackl period

Answer:
Easyl tol calculatel andl understand



QUESTION
Limitationl ofl paybackl period

Answer:

, Doesn'tl considerl cashl flowsl afterl recovery



QUESTION
Capitall needs

Answer:
Issuingl taxl refunds



QUESTION
Equityl capital

Answer:
Ownershipl inl al company



QUESTION
Debtl capital

Answer:
Takingl onl liabilities



QUESTION
Retainedl earnings

Answer:
Profitsl reinvestedl backl intol thel company



QUESTION
DFNl (Discretionaryl Financingl Need)

Answer:
Fundingl shortfalll forl projects