A firm is considering replacing the existing industrial air conditioning unit. They will pick one...
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A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,468.00 to install, $5,014.00 to operate per year for 7 years at which time it will be sold for $7,062.00. The second, RayCool 8, costs $41,121.00 to install, $2,143.00 to operate per year for 5 years at which time it will be sold for $9,074.00. The firms cost of capital is 5.40%. What is the equivalent annual cost of the AC360?
Answer Format: Currency: Round to: 2 decimal places.
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