Santos Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Root Inc. costs $1,050,000 and will last six years and have no residual value. The Root equipment will generate annual operating income of $194,250. Equipment manufactured by Littleton Limited costs $1,100,000 and will remain useful for seven years. It promises annual operating income of $236,500, 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.) Average annual operating income from asset Root - Initial Investment = Accounting rate of return %