Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 18.3, Problem 1CC
Summary Introduction

To discuss: The adjusted present value method.

Introduction:

An adjusted present value (APV) is also known as net present value of a project that has the additional effects of the debt. After considering all the financial benefits, APV includes tax shields (like those provided by deductible interest).

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