1. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,477.00 to install, $5,139.00 to operate per year for 7 years at which time it will be sold for $6,984.00. The second, RayCool 8, costs $41,206.00 to install, $2,143.00 to operate per year for 5 years at which time it will be sold for $8,982.00. The firms cost of capital is 5.46%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Currency: Round to: 2 decimal places.

2. A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,517.00 per year for 8 years and costs $99,655.00. The UGA-3000 produces incremental cash flows of $27,288.00 per year for 9 years and cost $126,973.00. The firms WACC is 9.56%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. Round to: 2 decimal places.