Appendix B sheet 4
in CIA.Discnt
Hi,
I was wondering why in year 2021 and 2023, it makes a cash withdrawal.
I see that the cash withdrawal is necessary to arrive at 0$ closing balance, but is there a particular reason why it was made in those two years and how the amount was determined or is it just a hypothetical strategy that could have withdrwan a different amount in different years as long as the closing balance is 0$?
Thank you,
Comments
Good observation. It isn't immediately obvious why they did that, but here's an experiment for you. Try entering 0 instead of 11,155 for the cash withdrawal in 2021. If you do that, I think you'll see the answer! (You can also try entering different values for other years in that same column to gain insight on how the model works.)