What is an "adjusted present value"?

Answer by  hems (160)

Adjusted present value which was called as APV is one of the methods of business valuation.It can be calculated by using the formula APV= Base-case NPV + PV of financing effect. It is the net present value of a project if it is financed by single enquity.The main benefit of this is to provide a tax-shield.

Answer by  winnieslo (132)

Usually abbreviated APV, it is business valuation method. This method encompasses the base value of financing a venture solely through ownership equity plus the present value of financing. The formula for calculating is presents as APV=Base-case NPV+PV of financing effect. The primary benefit is to provide a tax shield, but can also allow a business to borrow at sub-market rates.