Adjusted Present Value

Adjusted Present Value (APV) means the Net Present Value (NPV) of a plan if financed exclusively by equity plus the Present Value (PV) of any financing settlement (the further effects of debt). Adjusted Present Value taking into account financing advantages, APV contains tax shields such as those provided by deductible interests. This article briefly explain the method is to calculate the NPV of the project as if it is all-equity financed.