Slice Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Stenback Inc. costs $850,000 and will last four years and have no residual value. The Stenback equipment will generate annual operating income of $161,500. Equipment manufactured by Littleton Limited costs $1,200,000 and will remain useful for five years. It promises annual operating income of $238,800, 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.) Average annual operating income from asset Stenback Littleton $ 161,500 Accounting Initial investment = rate of return 850,000 19.0 % %