Adjusted Present Value - APV

What Does Adjusted Present Value - APV Mean?
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.

Related Terms

Cost of Capital
Net Present Value (NPV)
Present Value (PV)
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