1.A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,958.00 to install, $5,069.00 to operate per year for 7 years at which time it will be sold for $6,891.00. The second, RayCool 8, costs $41,785.00 to install, $2,013.00 to operate per year for 5 years at which time it will be sold for $8,930.00. The firms cost of capital is 5.77%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

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

2. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,735.00 to install, $5,190.00 to operate per year for 7 years at which time it will be sold for $6,934.00. The second, RayCool 8, costs $41,988.00 to install, $2,010.00 to operate per year for 5 years at which time it will be sold for $8,955.00. The firms cost of capital is 5.09%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

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