Lukow Products is itvestigating the purchase of a piece of automated equipment that will save $170,000 each year in direct labor and inventory carrying costs. This equipment costs $880,000 and is expected to have a. 5 -year useful life with no salvage value. The company's required rate of return is 14% on all equipment purchases. Management anticipates that this equipment will provide intang ble benefits such as grealer fexibility and higher-quality output that will result in odditional future cash inflows. Cick here to view Exhibit 78.1 and Exhibit 78.2, to determine the appropriate discount factor(s) using table. Pegulred: Pequired information IThe following information apples to the questions dispityed beiow] Nick's Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games wou'd cost a total of $304,000, have a fifteen-year useful life, and hove a total salvage value of 530,400 . The company estemotes that annual revenues and expenses associated wath the gamos would be as follews: 20. Compute the simple rate of return promased by the games. 20. *t the company requires a simple rate of return of at loast 12h, wil the games be purchased