How do I respond to this discussion post with sources and citations? The Compressed Adjusted Present Value (APV) model is useful when a project's financing structure changes over time or when debt has a major impact on value. Unlike the traditional Weighted Average Cost of Capital (WACC) method, which blends financing and business risk into one rate, the APV model separates them. It first finds the project's value assuming it is entirely equity-financed, then adds the present value of financing benefits, such as tax savings from interest payments. This makes the APV approach especially helpful for highly leveraged projects, leveraged buyouts (LBOs), or international investments where taxes and debt levels may vary (Damodaran, 2012). The "compressed" version streamlines the process by assuming that tax shields move in proportion to debt, rather than calculating them year by year. In practice, analysts discount the project's free cash flows at the unlevered cost of equity to find the base value, and then add the present value of the tax shield, usually discounted at the cost of debt (Allen, Brealey, & Myers, 2020). Overall, the compressed APV model offers a clearer, more flexible way to value projects when financing decisions are complex or changing