A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,358.00 to install, $5,084.00 to operate per year for 7 years at which time it will be sold for $6,815.00. The second, RayCool 8, costs $41,000.00 to install, $2,045.00 to operate per year for 5 years at which time it will be sold for $8,901.00. The firms cost of capital is 5.92%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.