A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,298.00 to install, $5,144.00 to operate per year for 7 years at which time it will be sold for $7,011.00. The second, Ray Cool 8, costs $41,368.00 to install, $2,192.00 to operate per year for 5 years at which time it will be sold for $9,056.00. The firms cost of capital is 5.39%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

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

Please show every step and in a simple format, I am a beginner. If you can also show how to solve on the financial calculator, I would appreciate it.

I will need help today.