Adjusted present value

Hi there, adjusted present value (or "APV" for short) is a way to figure out how much something is worth to you right now, even if it won't actually make any money for you until later on.

Imagine that you have a piggy bank with some money in it, and you're trying to figure out how much it is worth. If you just count up how much is in the bank, that's like figuring out the "value" of something without taking anything else into account. But if you think about how much you could do with that money if you saved it or invested it, that's more like an "adjusted" value.

So the adjusted present value is like taking the value of something (like a project, a business, or an investment) and figuring out how much it will be worth to you at a specific time in the future, after you've done things like invest more money into it, pay off debts or taxes, or deal with any other costs or benefits that might happen over time.

This can be really helpful if you're trying to make a big decision like whether or not to buy a house, start a business, or invest in stocks. By looking at the adjusted present value, you can get a better idea of whether it's really worth it to spend your money on that thing, or if you'd be better off saving or investing your money somewhere else.