A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,213.00 to install, $5,045.00 to operate per year for 7 years at which time it will be sold for $6,958.00. The second, RayCool 8, costs $41,896.00 to install, $2,199.00 to operate per year for 5 years at which time it will be sold for $8,998.00. The firms cost of capital is 5.70%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.