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You deposit $200 in an Ideal Bank with rate r = 0.04 compounded annually. After 1y you withdraw $100. After 2y you withdraw $100. Analyze
You deposit $200 in an Ideal Bank with rate r = 0.04 compounded annually. After 1y you withdraw $100. After 2y you withdraw $100. Analyze the cash flow stream relative to your bank account. Let x_0, x_1, x_2 represent the cash flow stream. Then x_0 = ________, x_1 = ____________, x_2 = __________. In computing the present value of the cash flows, the discount factors are d(0, 0) = _______, d(0, 1) = _____, d(0, 2) = ________. The present values of the cash flows are PV[x_0] = ___________, PV[x_1] = ______, PV[x_2] = _________. The net present value of the cash flow stream is NPV[x_0, x_1, x_2] = ________. The net future value (after 2 years) of the cash flow stream is NFV[x_0, x_1, x_2] = __________
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