Question: Show your work please. #2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first,

Show your work please. #2 A firm is considering replacing the

Show your work please.

#2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,212.00 to install, $5,046.00 to operate per year for 7 years at which time it will be sold for $7,028.00. The second, RayCool 8, costs $41,155.00 to install, $2,195.00 to operate per year for 5 years at which time it will be sold for $8,952.00. The firm's cost of capital is 6.41%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places

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