Sunset Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Rouse Inc. costs $900,000 and will last six years and have no residual value. The Rouse equipment will generate annual operating income of $153,000. Equipment manufactured by Littleton Limited costs $1,250,000 and will remain useful for seven years. It promises annual operating income of $237,500, 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 Retum) for both pieces of equipment. (Enter the answer as a percent rounded to the nearest tenth percent.)