I am reviewing someone's assesment of a project's contribution to a Joint
Venture. The project has been running for a few years. The NPV of this
project cashflow is being calculated and then added to other projects to come
up with % contributions calc. (i.e. NPV of X+ NPV of Y = 100%, if NPV X = 10
then X = 10% contriubtion of all assets).

I have a stream of cashflows for an existing asset which are assumed to be
annual and based on calendar year-end. Asumed the dates range from
12/31/2008 to 12/31/2013 (6 periods) and the cashflow is $10 per period.

If I discount this flow using an NPV @ 8.6% my present value is $45.40.
Does this implicitly assume my time 0 date is 12/31/2007 (i.e. 365 days prior
to my first period end date).

The reason I ask is that the analysis I am looking at NPVs the cashflows
using the dates above but then adds in the undiscounted value of year end
2007 to the NPV(2008-2013). Is the assumption here that as I am discounting
back to 12/31/2007 in my NPV and that my forecasetd 2007 cashflow are
year-end as well that I would implicitly add these two value together.

I originally assumed that the calc would simply be an NPV for 2008-2013.
But the more I think about it, it makes sense if the time 0 calc is
12/31/2007.

Thanks

EM