Show that, mathematically, repayment loans and annuities are the same and can be considered as special cases of NPV.

*need to use repayment loan formula: A=L/Btr

NPV equation:

F0= outlay

Ft=positive cash flow

r=discount rate

F1 NPV = -F. + (1+r)1 + F2 F3 + + (1+r)2 (1+r)3 Ft + (1+r)t F1 NPV = -F. + (1+r)1 + F2 F3 + + (1+r)2 (1+r)3 Ft + (1+r)t