Sunset Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Smith Inc. costs $800,000 and will last four years and have no residual value The Smith equipment will generate annual operating income of $156,000. Equipment manufactured by Rustic Limited costs $1,375,000 and will remain useful for five years. It promises annual operating income of $247,500, and its expected residual value is $115,000 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 rate of return Accounting rate of return Accumulated depreciation Annual depreciation Average annual net cash inflow Average annual operating income from asset Expected annual net cash inflow Initial investment