Crush Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Vargas inc. costs $1,050,000 and wil last four years and have no residual value. The Vargas equipment will generate annual operating income of $194,250. Equipment manufactured by Riverside Limited costs $1,320,000 and will remain useful for five years. It promises annual operating income of $231,000, and its expected residual value is $100,000

Which equipment offers the higher ARR?

Which equipment ollass the Nigher APR? First, enter the formula, then calculate the ARR (Accounling Rate of Retum) for both pieces of equipment (Enter the answer as a percunt rounded to the naavent lantly peic int) Average annual operating income from asset Accounting Vargas Initial investiment rate of retum