Surset of Product is considering whether to upgrade is equipment Managers are considering two options. Equipment manufactured by Route Inc. costs $800,000 and will last six years and have no residual value. The Rouse equipment will generate annual operating income of $156,000. Equipment manufactured by Brookside Limited costs $1,320,000 and will remain used for seven 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 Rate of Retum) for both pieces of equipment. (Enter the answer as a percent rounded to the nearest tant percent) Accounting rate of retum Rouse Brookside Which equipment offers the higher ARR? The guipment on the tiger rate of rebum. Brookside Mouse