Quick Step Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Vargas Inc. costs $1,200,000 and will last four years and have no residual value. The Vargas equipment will generale annual operating income of $198,000. Equipment manufactured by Brookside Limited costs $1,150,000 and will remain useful for five years. It promises annual operating income of $235,750, and its expected residual value is $105,000. Which equipment offers the higher ARR? First, enter the formula, then calculate the ARR (Accounting Rate of Return) for both pieces of equipment. (Enter the answer as a percent rounded to the nearest tenth percent.) Accounting = rate of return