Describes the "present value" (APV) approach to the discounted cash flow analysis. Most of the note is devoted to a critical comparison and APV approach wrighted average cost of capital (WACC). Argues that APV, usually, if not always, easier, more precise, and / or more informative than using WACC. Designed to be distributed in conjunction with case assessment and captial budget. Assumes students are familiar with the WACC, but not with APV. "Hide
by Timothy A. Luehrman 7 pages. Publication Date: January 8, 1993. Prod. #: 293092-PDF-ENG
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