Homework: Chapter 12 Graded Homework Save Score: 0 of 5 pts 1 of 6 (0 complete) HW Score: 0%, 0 of 30 pts E12-21A (similar to) Question Help Santos Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Vargas Inc. costs $1,050,000 and will last four years and have no residual value. The Vargas equipment will generate annual operating income of $194,250. Equipment manufactured by Brookside Limited costs S1,375,000 and will remain useful for five years. It promises annual operating income of $247,500, and its expected residual value is $105,000 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 Choose from any dron-down list and then click Check