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Please help #1 + A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the
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#1 + A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,705.00 to install, $5,136.00 to operate per year for 7 years at which time it will be sold for $6,982.00. The second, RayCool 8, costs $41,753.00 to install, $2,188.00 to operate per year for 5 years at which time it will be sold for $8,955.00. The firm's cost of capital is 6.51%. What is the equivalent annual cost of the AC360? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity Step by Step Solution
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