Slice Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Root Inc. costs $940,000 and will last five years and have no residual value. The Root equipment will generate annual operating income of $141,000. Equipment manufactured by Lakeside Limited costs $1,150,000 and will remain useful for six years. It promises annual operating income of $235,750, 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 I Initial investment = = Accounting rate of return % Root