The capital budgeting decision techniques discussed so far all have strengths and weaknesses; however, they do...

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The capital budgeting decision techniques discussed so farall have strengths and weaknesses; however, they do comprise themost popular rules for valuing projects. On the otherhand, valuing an entire business requires that someadjustments be made to various pieces of these methodologies. As anexample, in valuing a business, one frequently used alternative toNet Present Value (NPV) is called Adjusted Present Value (APV).Research other popular business valuation models.
In 600-700 contentwords, respond to the following:
Define APV. How does it differ from NPV?
Identify and discuss at least two otherbusinessvaluationmodels that are popular.

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Answer Adjusted present value APV is the value of the firm when we take take only equity into consideration along with debt financing costs such as interest tax shields costs of financial distress and debt issuance Its the value of of the firm without debt Net Present Value NPV The NPV is used to calculate the current value of all cash inflows generated buy the project along with considering the initial investment which is a cash outflow See Answer

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