income of $$168,000.$ Equipment manufactured by Rustic Limited costs $$1,350,000$ and will remain useful for five years. It promises annual operating income of $$249,750,$ and its expected residual value is $$110,000.$

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.$)$