1. Pace Hardware is adding a new product line that will require an investment of $1,520,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $320,000 the first year, $280,000 the second year, and $240,000 each year thereafter for eight years. Assume the project has no residual value. -> The ARR is ____ % (round your answer tow decimal places) 2.Transport Design is shopping for new equipment. Managers are considering two investments. Equipment manufactured by Rouse, Inc., costs $1,020,000 and will last for five years, with no residual value. The Rouse equipment will generate annual operating income of $265,000. Equipment manufactured by Vargas Co. costs $1,240,000 and will remain useful for six years. it estimates annual operating income of $230,000, and its expected residual value is $100,000. -> Which equipment offers the higher ARR? calculate the accounting rate of return for both companies.(round the percentage to the nearest tenth percent, X.X%) Rouse _____ % Vargas_____ % the _______ equipment offers the higher rate of return.