2. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,941 to install, $5,126 to operate per year for 7 years at which time it will be sold for $7,173. The second, RayCool 8, costs $41,220 to install, $2,018 to operate per year for 5 years at which time it will be sold for $8,953. The firms cost of capital is 5.7%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Currency: Round to: 2 decimal places.