Intro to Investments
Adjusted Present Value (APV) is a valuation method that separates the impact of financing from the operational aspects of an investment by calculating the net present value of a project as if it were all-equity financed and then adding the present value of any tax benefits or financing effects. This approach provides a clearer view of the project's inherent value, making it particularly useful when assessing projects with varying levels of debt.
congrats on reading the definition of Adjusted Present Value. now let's actually learn it.