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LSDefine

Simple English definitions for legal terms

APV

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A quick definition of APV:

APV: A way to figure out how much something is worth by adding together its current value and the value it gains from how it is paid for. This helps people decide if it is a good investment or not.

A more thorough explanation:

APV stands for adjusted present value. It is a financial term used to determine the value of an asset by adding its present value to the value added by capital-structure effects.

Present value is the sum of money that, with compound interest, would amount to a specified sum at a specified future date. It is also known as present worth. For example, if you want to have $10,000 in five years, the present value of that amount would be less than $10,000 because of the time value of money.

Adjusted present value takes into account the value added by capital-structure effects. This means that it considers the impact of financing decisions on the value of an asset. For example, if a company takes on debt to finance a project, the adjusted present value would reflect the impact of that debt on the project's value.

Net present value is another financial term that is related to APV. It is the present value of net cash flow from a project, discounted by the cost of capital. This value is used to evaluate the project's investment potential.

Let's say a company is considering investing in a new project that will cost $100,000. The project is expected to generate net cash flow of $30,000 per year for five years. The cost of capital for the company is 10%. To calculate the net present value of the project, we would discount the net cash flow by the cost of capital and add up the present values. The net present value of the project would be:

NPV = (-$100,000) + ($30,000 / 1.1) + ($30,000 / 1.1^2) + ($30,000 / 1.1^3) + ($30,000 / 1.1^4) + ($30,000 / 1.1^5) = $3,853.68

This means that the project has a positive net present value and is a good investment for the company.

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Dkk
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SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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