Exercise 12-8 (Algo) Payback Period and Simple Rate of Return [LO12-1, LO12-6] [The following information applies to the questions dispiayed boiow.) Nick's Novelties, Incorporated, Is considering the purchase of new electronic games to place in its amusement houses The games would cost a total of $432,000, have a fifteen-year useful life, and have a total salvage value of 543,200 . The company estimates that annual revenues and expenses associated with the games would be as follows: Exercise 12-8 Part 2 (Algo) 2a. Compute the simple rate of resurn promised by the games. 2b. If the company requires a simple rate of return of at least 8% will the gomes be purchased? Complete this question by entering your answers in the tabs below. Compute the simple rate of retum promised by the games. (Hound your anawer to 1 docimal place. is. 0.12a thowif be considered as 12.2%.%