Consider an asset which has no initial cost but for which there is an expenditure of $5,000 at the end of the first year. The net cost at the end of year 2 is $10,000. With an interest rate of 6%, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity factor with an interest rate of 6% and two payments is given 1- (1.06)2 (1+i)" = 1.833. by .06