Adjusted Present Value (APV)
ACCA P4考试：Adjusted Present Value (APV)
1 Use
APV is used to appraise investments whose financing package disturbs the firm's existing capital structure (i.e. financial risk). It can also deal with a change in business risk.
It is often described as the "divide and conquer" approach in that it separates the "base" benefits of the project from its "side-effects".
APV is based on Modigliani and Miller's assertion that the value of a geared firm = value of an ungeared firm + present value of tax shield. Applied at a project level:
APV = Project value if all equity financed + Present value of the tax shield from any debt |
发表于 2016-4-18 23:49
|