generate Super 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 five years and have no residual value. The Smith equipment will annual operating income of $171,000. Equipment manufactured by Riverside Limited costs $1,250,000 and will remain useful for six years. It promises annual operating income of $237,500, and its expected residual value is $115,000. 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.) Average annual operating income from asset Smith Riverside 171000 237500 Which equipment offers the higher ARR? The equipment offers the higher rate of return Riverside Smith Accounting rate of return % % Super 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 five years and have no residual value. The Smith equipment will generate annual operating income of $171,000. Equipment manufactured by Riverside Limited costs $1,250,000 and will remain useful for six years. It promises annual operating income of $237,500, and its expected residual value is $115,000. 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.) Smith Riverside Average annual operating income from asset 171000 237500 Which equipment offers the higher ARR? The equipment offers the higher rate of return. Future value Initial investment Net present value Present value Residual value Total cash inflows Accounting rate of return ]% % Super Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Sm generate annual operating income of $171,000. Equipment manufactured by Riverside Limited costs $1,250,000 and will remain useful for sim 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 rou Smith Riverside Average annual operating income from asset 171000 237500 Which equipment offers the higher ARR? The Riverside equipment offers the higher rate of return. Initial investment = Accounting rate of return " = % % Super 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 five years and have no residual value. The Smith equipment will generate annual operating income of $171,000. Equipment manufactured by Riverside Limited costs $1,250,000 and will remain useful for six years. It promises annual operating income of $237,500, and its expected residual value is $115,000. 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.) Average annual operating income from asset Initial investment Smith 171000 237500 Accounting rate of return % % Riverside Which equipment offers the higher ARR? The Riverside equipment offers the higher rate of return. t Super 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 five years and have no residual value. The Smith equipment will generate annual operating income of $171,000. Equipment manufactured by Riverside Limited costs $1,250,000 and will remain useful for six years. It promises annual operating income of $237,500, and its expected residual value is $115,000. 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.) Average annual operating income from asset Smith 171000 237500 Riverside Which equipment offers the higher ARR? 4 Initial investment = = Accounting rate of return de de %