Adjusted present value | Business & Finance homework help
APV, or Adjusted Present Value, is a financial metric used to calculate the value of an investment or project. It takes into account the impact of financing options such as debt and equity on the overall value of a project. The main difference between APV and NPV (Net Present Value) is that APV explicitly considers both the cost and benefits associated with different financing mixes while NPV only considers cash flows from operating activities. This makes APV more complex but also more accurate in determining the true economic value of a project.