Select Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Root Inc. costs $850,000 and will last six years and have no residual value. The Root equipment will generate annual operating income of $161,500. Equipment manufactured by Riverside Limited costs $1,350,000 and will remain useful for seven years. It promises annual operating income of $249,750, 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.) Accounting rate of retum Accounting rate of return Accumulated depreciation Annual depreciation Average annual net cash inflow Average annual operating income from asset Expected annual net cash inflow Help me so Clear all Check answer Initial investment