A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,675.00 to install, $5,058.00 to operate per year for 7 years at which time it will be sold for $6,848.00. The second, RayCool 8, costs $41,273.00 to install, $2,149.00 to operate per year for 5 years at which time it will be sold for $8,968.00. The firms cost of capital is 5.37%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

Round to two places