1a:) A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The

[answerhappygod]

1a:) A firm is considering replacing the existing industrial air
conditioning unit. They will pick one of two units. The first, the
AC360, costs $26,820.00 to install, $5,131.00 to operate per year
for 7 years at which time it will be sold for $6,827.00. The
second, RayCool 8, costs $41,274.00 to install, $2,122.00 to
operate per year for 5 years at which time it will be sold for
$9,046.00. The firm’s cost of capital is 5.32%. What is the
equivalent annual cost of the AC360? Assume that there are no
taxes
1b:) A firm is considering replacing the existing industrial air
conditioning unit. They will pick one of two units. The first, the
AC360, costs $26,209.00 to install, $5,136.00 to operate per year
for 7 years at which time it will be sold for $6,874.00. The
second, RayCool 8, costs $41,051.00 to install, $2,135.00 to
operate per year for 5 years at which time it will be sold for
$9,036.00. The firm’s cost of capital is 5.45%. What is the
equivalent annual cost of the RayCool8? Assume that there are no
taxes.
please round to 2 decimals