1. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,646.00 to install, $5,067.00 to operate per year for 7 years at which time it will be sold for $6,813.00. The second, RayCool 8, costs $41,394.00 to install, $2,141.00 to operate per year for 5 years at which time it will be sold for $9,055.00. The firms cost of capital is 5.64%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

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

2) A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,137.00 to install, $5,054.00 to operate per year for 7 years at which time it will be sold for $6,979.00. The second, RayCool 8, costs $41,079.00 to install, $2,195.00 to operate per year for 5 years at which time it will be sold for $9,070.00. The firms cost of capital is 5.12%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

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