Question: Week 5 Writing Assignment: The capital budgeting decision techniques discussed so far all have strengths and weaknesses; however, they do comprise the most popular rules

Week 5 Writing Assignment:

The capital budgeting decision techniques discussed so far all have strengths and weaknesses; however, they do comprise the most popular rules for valuing projects. On the other hand, valuing an entire business requires that some adjustments be made to various pieces of these methodologies. As an example, in valuing a business, one frequently used alternative to Net Present Value (NPV) is called Adjusted Present Value (APV).

  1. Define APV. How does it differ from NPV?
  2. Identify and discuss at least two other business valuation models that are popular.

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