#38 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,387.00 to install, $5,018.00 to operate per year for...

Extracted text: #38 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,387.00 to install, $5,018.00 to operate per year for 7 years at which time it will be sold for $7,075.00. The second, RayCool 8, costs $41,041.00 to install, $2,091.00 to operate per year for 5 years at which time it will be sold for $9,042.00. The firm's cost of capital is 6.50%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity