Select Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Vargas Inc. costs $$800,000$ and will last six years and have no residual value. The Vargas equipment will generate annual operating income of $$156,000.$ Equipment manufactured by Little Stream 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 $$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.$)$