WGU D076 OBJECTIVE ASSESSMENT FINAL
EXAM 2 LATEST VERSIONS (VERSION A AND B)
2024-2025 ACTUAL EXAM
Practice questions for this set
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It considers the time value of money, it tells you the dollar value that the
investment will add to the firm, and it takes risk into account. - These are the
main advantages of the NPV, some of which are not included in other
methods of valuation, which makes NPV the most reliable.
Give this one a try later!
Why is NPV the most reliable How do you factor sunk costs into
2
method for evaluating investments? capital investment analysis?
What type of ratio is used to
Why is it important to have an
consider how a firm is financed and
accurate, carefully calculated
3 to assess a firm's ability to pay 4
required rate of return as part of the
interest and pay back long-term
NPV?
obligations?
, Don't know?
Terms in this set (112)
What area of finance Investments
involves deciding which
assets to invest in to
create wealth in the
future?
Hannah is the financial Making a financing decision - Since the project has
manager of a firm. A already been approved, Hannah is trying to find a way
project that she has to finance the investment and considering its capital
recommended has been structure.
approved and will cost $5
million. Since the company
does not have enough
cash on reserve, Hannah
must figure out how to
raise enough money to
start the project. She can
choose whether to issue
new bonds, new stocks, a
mortgage loan, or some
combination of those
options. What task is
Hannah performing in this
scenario?
, 0/1 To maximize individual utility -While everyone has
Maria and Mateo are different personal financial goals, the objectives of
setting financial goals. such goals is to maximize individual utility.
They decide that they
need to save $200 each
month to reach their goal
of taking their children to
visit their grandparents in
Spain next summer. What
is the objective of setting
such a goal?
Which professional works Financial planner - Professional financial planners
with individuals to help work with individuals to help them achieve their
them achieve their financial goals.
financial goals?
1/1 Financing a goal - He has already made a decision to
Omar is about to purchase purchase the car and is now deciding on financing
a new car for $30,000. He options.
knows he wants to buy the
car, but he is still trying to
decide how to pay for it.
He has barely over
$30,000 in his bank
account. He can either
take out an auto loan from
a bank or use a mix of
cash and an auto loan.
Which area of finance Business finance - Business finance is the area of
deals with sources of finance that deals with uses and sources of funding to
funding and the capital increase the value of the firm.
structure of corporations
and seeks to increase the
value of a firm to its
owners?
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