A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,826.00 to install, $5,021.00 to operate per year for 7 years at which time it will be sold for $7,003.00. The second, RayCool 8, costs $41,822.00 to install, $2,016.00 to operate per year for 5 years at which time it will be sold for $9,080.00. The firms cost of capital is 6.52%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.