A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The firs

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A firm is considering replacing the existing industrial air
conditioning unit. They will pick one of two units. The first, the
AC360, costs $26,493.00 to install, $5,127.00 to operate per year
for 7 years at which time it will be sold for $7,122.00. The
second, RayCool 8, costs $41,448.00 to install, $2,057.00 to
operate per year for 5 years at which time it will be sold for
$9,007.00. The firm’s cost of capital is 6.22%. What is the
equivalent annual cost of the AC360? Assume that there are no
taxes.
round to two decimals