Lecture

Principles of Finance: APV and Debt Levels

Description

This lecture discusses the concept of Adjusted Present Value (APV) in finance, focusing on the impact of predetermined debt levels on interest tax shields. It covers topics such as debt schedules, interest tax shield computations, levered project valuation, and the Flow-to-Equity method. The instructor explains how to calculate interest tax shields, levered project values, and free cash flows to equity, emphasizing the importance of predetermined debt levels in project valuation.

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