Santos Gor Product is considering whether to upgrades woment Manags we conting to one tomated by 50.000 d w wyshe oment where along womeo S181300. Equipment and by Leon 1.125.000 and were years to wing one of 72250 anos 15110.000 Whichementers the ARA? tre for the call the ARR A Permite acceso Acco Mok Santos Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by McKnight Inc. costs $850,000 and will last five years and have no residual value. The McKnight equipment will generate annual operating income of $161,500. Equipment manufactured by Littleton Limited costs $1,125,000 and will remain useful for six years. It promises annual operating income of $236,250, 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.) Accounting rate of return Average annual operating income from asset Initial investment % 11 Mcknight