Adjusted present value(redirected from Adjusted Present Values)
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Adjusted Present Value
The net present value of any project financed exclusively by equity and the present value of debt. Using the adjusted present value can carry some tax benefits.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved