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Read the supplied amount’s definition
Suppose additional investment is 10 and a supplied gross present value of future receipts is 15. Net value is 15 − 10 = 5. If the supplied 15 is instead already labelled project NPV including that investment, subtracting 10 again changes the meaning.
Separate the two statements
| Supplied amount | Required treatment |
|---|---|
| Gross PV of future receipts = 15 | Subtract the outlay 10 once |
| Project NPV including outlay = 15 | Do not subtract the included outlay again |
Reconstruct the boundary rather than guessing
Ask which dates, taxes and outlays were included in the imported number. A word such as expected value can be ambiguous. Trace the underlying schedule before combining it with another amount.
Keep earlier sunk spending out of this label check
Historical spending may belong in another report. It does not resolve whether the current supplied figure is gross or net. These are separate questions: the forward baseline and the definition of the amount being used.