Consider a piece of equipment for which the expenditure at the beginning of period 1 is $30,000

The net cost at the end of year 1 is $5,000.

The net cost at the end of year 2 is $7,000.

The net cost at the end of year 3 is $8,000.

What is the levelized net cost with three equal payments at the end of years 1 to 3 with an interest rate of 4%? The annuity factor with a 4% nominal discount rate and three payments is given by

Consider a piece of equipment for which the expenditure at the beginning of period 1 is $30,000 The net cost at the end of year 1 is $5,000. The net cost at the end of year 2 is $7,000. The net cost at the end of year 3 is $8,000. What is the levelized net cost with three equal payments at the end of years 1 to 3 with an interest rate of 4%? The annuity factor with a 4% nominal discount rate and three payments is given by (1-ti) (L.00)2.7751 04