A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,222.00 to install, $5,172.00 to operate per year for 7 years at which time it will be sold for $6,916.00. The second, RayCool 8, costs $41,885.00 to install, $2,116.00 to operate per year for 5 years at which time it will be sold for $8,904.00. The firms cost of capital is 5.62%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

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