wxs1986

I think of it this way:

The pre is just the NPV of the business without additional investment

The post is the NPV of the business with an additional investment. To get this NPV, you have to assume an exit value AND you can't realize the exit value without the investment, the post = PV(Exit Value)

Since the NPV of the investment IS the investment itself, the post also = pre + investment

You could get into a discussion about whether or not the investors are good negotiators, which would make the NPV of the investment not equal the investment, but that's not what CFAI is testing