Nick$$s Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $$332,000,$ have a fifteen$-$year useful life, and have a total salvage value of $$33,200.$ The company estimates that annual revenues and expenses associated with the games would be as follows:

Revenues $ $280,000$

Less operating expenses:

Commissions to amusement houses $ $80,000$

Insurance $57,000$

Depreciation $19,920$

Maintenance $60,000216,920$

Net operating income $ $63,080$

$2$a$.$ Compute the simple rate of return promised by the games.

$2$b$.$ If the company requires a simple rate of return of at least $12\%,$ will the games be purchased?