Atlanta Tennis Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Kunshier Inc. costs $1,200,000 and will last four years with no residual value. The Kunshier equipment will generate annual operating income of $198,000. Equipment manufactured by Preston Limited costs $1,100,000 and will remain useful for five years. It promises annual operating income of $236,500, and its expected residual value is $100,000. 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.) Kunshier Preston Which equipment offers the higher ARR? The equipment offers the higher rate of return. Accounting rate of return % %