A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the
AC360, costs $26,403.00 to install, $5,003.00 to operate per year for 7 years at which time it will be sold for $6,911.00.
The second, RayCool 8, costs $41,074.00 to install, $2,034.00 to operate per year for 5 years at which time it will be sold
for $8,989.00. The firm's cost of capital is 6.80%. What is the equivalent annual cost of the AC360? Assume that there
are no taxes.