A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,851.00 to install, $5,170.00 to operate per year for 7 years at which time it will be sold for $6,946.00. The second, RayCool 8, costs $41,131.00 to install, $2,011.00 to operate per year for 5 years at which time it will be sold for $9,095.00. The firms cost of capital is 5.05%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.