Crush Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Vargas Inc. costs $940,000 and will last five years and have no residual value. The Vargas equipment will generate annual operating income of $141,000. Equipment manufactured by Riverside Limited costs $1,100,000 and will remain useful for six years. It promises annual operating income of $236,500, and its expected residual value is $105,000. Which equipment offers the higher ARR