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#2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,194.00

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#2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,194.00 to install, $5,162.00 to operate per year for 7 years at which time it will be sold for $6,859.00. The second, RayCool 8, costs $41,541.00 to install, $2,145.00 to operate per year for 5 years at which time it will be sold for $9,087.00. The firm's cost of capital is 5.20%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. #3 A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $26,175.00 per year for 8 years and costs $103,457.00. The UGA-3000 produces incremental cash flows of $27,791.00 per year for 9 years and cost $124,095.00. The firm's WACC is 8.45%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. #4 A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,495.00 per year for 8 years and costs $100,773.00. The UGA-3000 produces incremental cash flows of $27,345.00 per year for 9 years and cost $125,283.00. The firm's WACC is 7.19%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places

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