Exercise 14-8 (Algo) Payback Period and Simple Rate of Return [LO14-1, LO14-6]

Required information Exercise 14-8 (Algo) Payback Period and Simple Rate of Return [LO14-1, LO14-6] [The following information applies to the questions displayed below] 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 $300,000, have a fifteen-year useful life, and have a total salvage value of $30,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Exercise 14-8 Part 2 (Algo) 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? Complete this question by entering your answers in the tabs below. Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. l.e. 0.123 should be considered as 12.3%.) 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? Complete this question by entering your answers in the tabs below. If the company requires a simple rate of return of at least 12%, will the games be purchased