Select Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Atlas Inc. costs $800,000 and will last five years and have no residual value. The Atlas equipment will generate annual operating income of $156,000. Equipment manufactured by Riverside 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 $105,000 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 = %