APV
APV: translation
( adjusted present value)
The net present value analysis of an asset if financed solely by equity ( present value of unlevered cash flowss), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility ( deductible) 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. Bloomberg Financial Dictionary