Carried Interest Contradition?

I thought from my experiences with Schweser that carried interest for the first year it exists equals the percent agreed upon (usually 20%) of the difference between NAV Before Distributions (assuming this is greater than committed capital) minus committed capital. After that, it’s simply the 20% times (Change in NAV Before Dist minus committed capital). On problem #9, page 105, book 5 CFAI: “Under a deal-by-deal method with a clawback provision and true-up every three years, the cumulative dollar amount the GP receives by the end of the three years equals what?” A. $1 million B. $2 million C. $3 million They take 20% of the difference between total three-year proceeds and three year invested capital: Private Equity Committed Capital is $400 million Carried Interest= 20% First project investmentcapital=$20 million Second project investment capital=$45 million Third project investment capital=$50 million Proceeds from first project=$25 million Proceeds from second project=$35 million Proceeds from third project=$65 million So they give this as the calculation: 0.2*[(25+35+65) - (20-45-50)]=$40 million And they say the answer is $2 million. Huh?

the calc should be - (20+45+50)… its just the profits from each of the projects project 1 - 25-20= 5 mil project 2 - 35-45= -10mil project 3 - 65-50= 15mil total is 10mil of which GP carried interest is 20%. 20%*10 = 2 mil…

I think the answer should be: 0.2*[(25+35+65) - (20+45+50)]=$2 million, the signs in parenthesis may have caused the confusion.