Adjusted present value (APV)


 

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Adjusted present value (APV)

The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout.



Adjusted present value (APV)

Similar Matches

Inflation adjusted

Inflation adjusted

Adjusted for inflation.


Adjusted exercise price

Adjusted exercise price

Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield.


Adjusted basis

Adjusted basis

Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.


Adjusted balance method

Adjusted balance method

Method of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method.


Adjusted for inflation

Adjusted for inflation

Corrected for price changes to yield an equivalent in terms of goods and services. The adjustment divides nominal amounts for different years by price indices for those years -- e.g. the CPI or the implicit price deflator -- and multiplies by 100. This converts to real values, i.e. valued at the prices of the base year for the price index.


Further Suggestions

adjusted gross income
Risk adjusted profitability
Net adjusted present value
Adjusted gross income (AGI)
Adjusted Gross Income
Risk adjusted return
Seasonally adjusted
Risk adjusted return
Adjusted debit balance (ADB)
Risk adjusted discount rate
adjusted earnings


 
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