Exercise 13-8 Payback Period and Simple Rate of Return (LO13-1, LO13-6) [The following information applies to the questions displayed below.) Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $392,000, have a fifteen-year useful life, and have a total salvage value of $39,200. The company estimates that annual revenues and expenses associated with the games would be as follows: 300.one Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $90,000 72,000 23,520 40.000 225 520 $24.480 Exercise 13-8 Part 2 2a. Compute the simple rate of return promised by the games 2b. If the company requires a simple rate of return of at least 12%, Will the games be purchased