Question
33 #2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs
33 #2
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,844.00 to install, $5,001.00 to operate per year for 7 years at which time it will be sold for $6,865.00. The second, RayCool 8, costs $41,178.00 to install, $2,106.00 to operate per year for 5 years at which time it will be sold for $9,013.00. The firms cost of capital is 5.29%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.
Answer format: Currency: Round to: 2 decimal places.
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