IUNUNU N LERS W Re Yusurs displayed belowl 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 $240,000, have a fifteen year useful life, and have a total salvage value of $24,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $250,000 Revenues Less operating expenses: Comissions to amusement houses Insurance Depreciation Maintenance Net operating income $90,000 30,000 14,400 70,000 204,400 $ 45,600 Exercise 13-8 Part 2 2a. Compute the simple rate of return promised by the games. 2. 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. Reg 2A Reg 26 If the company requires a simple rate of return of at least 12%, will the games be purchased