A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,698.00 to install, $5,131.00 to operate per year for 7 years at which time it will be sold for $6,804.00. The second, RayCool 8, costs $41,226.00 to install, $2,065.00 to operate per year for 5 years at which time it will be sold for $8,937.00. The firms cost of capital is 6.30%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.