A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,242.00 to install, $5,156.00 to operate per year for 7 years at which time it will be sold for $7,176.00. The second, RayCool 8, costs $41,433.00 to install, $2,001.00 to operate per year for 5 years at which time it will be sold for $9,011.00. The firms cost of capital is 6.90%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

Currency: Round to 2 decimal places