Is this answer of Schweser correct?

In Exam 1 of schweser section 1, there is a calculation multiple choise question of TVPI (total value to paid in ratio).

The info given is the following: PE Company DGM:

Cash Flow year 1: -100 Cash Flow year 2: -300 NAV Year 3: 500

The answer for TVPI Ratio in year 3 is: 500/400

For what I can estimate the cash flows are positive for the investor? Why are they negative? The TVPI formula es : (ΣDt + NAVt) / ΣCt Shouldn’t the result be : (-100-300 + 500) / (-100-300)

Thanks for your help!

Those ratio, TVPI, RVPI, DVPI should all be positive. It is essentially a ration of cash in vs cash out. In that exam, RVPI is ration of NAV vs cash been called. Your NAV is 500, and total cash called is 300+100==>400. 500/400 is your answer.

Thanks!