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Crush Golf Products is considering whether to upgrade its equipment. Managers are considering two options....

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Accounting

Crush Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Vargas inc. costs $1,050,000 and wil last four years and have no residual value. The Vargas equipment will generate annual operating income of $194,250. Equipment manufactured by Riverside Limited costs $1,320,000 and will remain useful for five years. It promises annual operating income of $231,000, and its expected residual value is $100,000

Which equipment offers the higher ARR?

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Which equipment ollass the Nigher APR? First, enter the formula, then calculate the ARR (Accounling Rate of Retum) for both pieces of equipment (Enter the answer as a percunt rounded to the naavent lantly peic int) Average annual operating income from asset Accounting Vargas Initial investiment rate of retum

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