Adjusted Present Value - APV

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DEFINITION of 'Adjusted Present Value - APV'

The Net Present Value (NPV) of a project if financed solely by equity plus the Present Value (PV) of any financing benefits (the additional effects of debt).

INVESTOPEDIA EXPLAINS 'Adjusted Present Value - APV'

By taking into account financing benefits, APV includes tax shields such as those provided by deductible interests.

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