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adjusted present value

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Financial Dictionary

Adjusted Present Value - APV

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 Commentary

By taking into account financing benefits, APV includes tax shields such as those provided by deductible interests.

Related Links

Understanding The Time Value Of Money

See also: Cost of Capital, Net Present Value (NPV), Present Value (PV)

Also spelled: apv

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