Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 28 October 1994
Length: 7 pages
Data source: Generalised experience
Abstract
Describes the 'adjusted present value' (APV) approach to discounted cash flow analysis. Much of the note is devoted to a critical comparison of APV and an approach based on the wrighted average cost of capital (WACC). Argues that APV is usually, if not always, simpler, more accurate, and/or more informative than using the WACC. Designed to be distributed in conjunction with a case on valuation and captial budgeting. Assumes students are familiar with the WACC but not with APV.
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 6 pages
About
Abstract
Describes the 'adjusted present value' (APV) approach to discounted cash flow analysis. Much of the note is devoted to a critical comparison of APV and an approach based on the wrighted average cost of capital (WACC). Argues that APV is usually, if not always, simpler, more accurate, and/or more informative than using the WACC. Designed to be distributed in conjunction with a case on valuation and captial budgeting. Assumes students are familiar with the WACC but not with APV.
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Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 6 pages