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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 MatchesAdjusted basisAdjusted basisPrice 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. Risk adjusted discount rateRisk adjusted discount rateThe rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment. Risk adjusted returnRisk adjusted returnOften we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance. Adjusted Gross IncomeAdjusted Gross IncomeGross income of a building it fully rented, less an allowance for estimated vacancies. Risk adjusted returnRisk adjusted returnReturn earned on an asset normalized for the amount of risk associated with that asset. Further SuggestionsAdjusted exercise priceAdjusted balance method Risk adjusted profitability Adjusted debit balance (ADB) Seasonally adjusted Adjusted gross income (AGI) adjusted gross income Inflation adjusted adjusted earnings Adjusted for inflation Net adjusted present value |
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