E12-21A (similar to) Question Help Slice Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Smith Inc. costs $950,000 and will last six years and have no residual value. The Smith equipment will generate annual operating income of $171,000. Equipment manufactured by Littleton Limited costs $1,200,000 and will remain useful for seven years. It promises annual operating income of $238,800, 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.) Accounting rate of return E12-21A (similar to) Question Help Slice Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Smith Inc. costs $950,000 and will last six years and have no residual value. The Smith equipment will generate annual operating income of $171,000. Equipment manufactured by Littleton Limited costs $1,200,000 and will remain useful for seven years. It promises annual operating income of $238,800, 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.) Accounting rate of return