The APV Method Is More Complicated Than the WACC Method

question 76

Multiple Choice

The APV method is more complicated than the WACC method because we must compute two separate valuations: ________.

• A) the unlevered project and the income tax shield
• B) the unlevered project and the CCA tax shield
• C) the levered project and the interest tax shield
• D) the unlevered project and the interest tax shield

---

Definitions:

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Cohabitating

Living together with another person in a long-term relationship without being legally married.

Spend

The act of using money to buy or pay for goods and services.

Partnership Status

A term that refers to the legal or personal recognition of a relationship's nature, typically within the context of marriage or business.