1.) A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,290.00 to install, $5,051.00 to operate per year for 7 years at which time it will be sold for $7,103.00. The second, RayCool 8, costs $41,329.00 to install, $2,042.00 to operate per year for 5 years at which time it will be sold for $8,922.00. The firms cost of capital is 5.70%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

2.) A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,451.00 to install, $5,118.00 to operate per year for 7 years at which time it will be sold for $7,049.00. The second, RayCool 8, costs $41,910.00 to install, $2,141.00 to operate per year for 5 years at which time it will be sold for $8,901.00. The firms cost of capital is 5.52%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

Answer format: Currency: Round to: 2 decimal places.