Consider an asset which has no initial cost but for which there is an expenditure of $21,000 at the end of the first year. The net cost at the end of year 2 is $33,075. With an interest rate of 5%, 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 4% and two payments is given by (i1(1+i)1)= (.051(1.05)21)=1.859