Ask Question
BusinessBusiness
14 March, 18:41

Define APV. How does it differ from NPV? Identify and discuss at least two other business valuation models that are popular.

+5
Answers (1)
  1. 14 March, 18:52
    0
    Adjusted Present Value (APV) and Net Present Value (NPV) are tools used in valuation of business operations or business projects. APV differs from NPV as the former uses cost of equity as the discount rate whereas the latter uses the WACC (weighted average cost of capital). Other business valuation methods are Payback period which is used to determine the number of years it takes for a project's future cashflows to fully recover the initial amount invested. Another example is Internal Rate of Return (IRR) which is the rate that determines how attractive a project; that which makes the NPV equal to zero.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Define APV. How does it differ from NPV? Identify and discuss at least two other business valuation models that are popular. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of these portfolio items might assist Susan in answering an interviewer who asks, "What is something you did well in school?" a. Diploma certificate b. Young Writers award c. transcript d. letter of reference from her supervisor
Answers (2)
An oil company is drilling a series of new wells on the perimeter of a producing oil field. About 20 % of the new wells will be dry holes.
Answers (1)
In a corporate legal entity, the personal assets of the owners are separate from the business' assets, but the personal liabilities of the owners are not. a. True b. False
Answers (1)
On August 2, Jun Co. receives a $8,000, 90-day, 11.0% note from customer Ryan Albany as payment on his $8,000 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year.
Answers (1)
Which of the following are true about retirement? select all that apply a. health needs can cut into retirement funds b, accidents do not affect retirement funds c, retirement planning does not include your personal goals d, part of retirement
Answers (1)
New Questions in Business
Which of the following is not a step in creating operating department income statements? eliminate the uncontrollable costs for each department. allocate indirect expenses across departments. prepare the departmental income statements.
Answers (1)
Suppose the supply equation is: Upper Q equals 12 plus 0.30 p. What is the price elasticity of supply if the market price is $16 ? nothing (round your answer to three decimal places ).
Answers (1)
This type of credit occurs when you charge a purchase at the time you buy the good or service
Answers (1)
Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively.
Answers (1)
The Clean and Shiny Car Wash Company charges $95 to detail a car They detailed 75 cars during the past month. Their expenses are given in the table below Expense Rent of Space Supplies Advertising 1.
Answers (2)
Home » Business » Define APV. How does it differ from NPV? Identify and discuss at least two other business valuation models that are popular.
Sign Up Forgot Password?