Santos Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Atlas Inc. costs $1,100,000 and will last six years and have no residual value. The Atlas equipment will generate annual operating income of $170,500. Equipment manufactured by Rustic Limited costs $1,250,000 and will remain useful for seven years. It promises annual operating income of $237,500, 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 Average annual operating income from asset Initial investment = rate of return Atlas %