The document discusses adjusted present value (APV) as an alternative to net present value (NPV) for valuing projects when capital structure or financing arrangements may change over time. APV breaks the valuation into two parts: 1) the value assuming all-equity financing, and 2) the additional value from debt financing, which incorporates the tax benefit of interest payments. This allows greater flexibility in modeling complex and changing financing situations compared to using a single weighted average cost of capital in NPV. The example shows calculating the individual equity and debt components and summing them to determine the project's total value under APV.