A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,260.00 to install, $5,089.00 to operate per year for 7 years at which time it will be sold for $6,923.00. The second, RayCool 8, costs $41,527.00 to install, $2,151.00 to operate per year for 5 years at which time it will be sold for $9,062.00. The firms cost of capital is 5.76%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.