Question: Question 6 1 pts Consider an asset which has no initial cost but for which there is an expenditure of $5,000 at the end of

 Question 6 1 pts Consider an asset which has no initial

Question 6 1 pts 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 $9,000. With an interest rate of 7%, 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 7% and two payments is given by (1+i)n i (1.07)2 .07 = 1.808

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