Slice Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Root Inc. costs $1,000,000 and will last four years and have no residual value. The Root equipment will generate annual operating income of $160,000. Equipment manufactured by Littleton Limited costs $1,320,000 and will remain useful for five years. It promises annual operating income of $231,000, and its expected residual value is $105,000. Which equipment offers the higher ARR? First, enter the formula, then calculate the ARR (Accounting Rite of Return) for both pieces of equipment. (Enter the answer as a percent rounded to the nearest tenth percent.) Average annual operating income from asset Initial investment Accounting rate of return Root 231000 1320000 17.5 %