Santos Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Rouse Inc. costs $1,050,000 and will last five years and have no residual value. The Rouse equipment will generate annual operating income of $194,250. Equipment manufactured by Littleton Limited costs $1,200,000 and will remain useful for six years. It promises annual operating income of $238,800, 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.) rate of return Rouse Littleton Which equipment offers the higher ARR? The equipment offers the higher rate of return