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For the past 25 years, managers have been taught that the best practice for valuing assets - that is, an existing business, factory, product line, or market position - is to use a discounted-cash-flow (DCF) methodology. That is still true. But the particular version of DCF that has been accepted as the standard - using the weighted-average cost of capital (WACC) - is now obsolete. Today''s better alternative, adjusted present value (APV), is especially versatile and reliable. It will likely replace WACC as the DCF methodology of choice among generalists. Like WACC, APV is used to value operations, or assets-in-place. Timothy Luehrman explains APV and walks readers through a case example designed to teach them how to use it. May be used with: (9-297-082) ''Note on Value Drivers''.