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

$32,000.$ The company

estimates that annual revenues and expenses associated with the games would be as

follows:

Revenues

$80,000$

Insurance $20,000$

Depreciation $19,200$

Maintenance $50,000169,200$

Net operating income $ $60,800$

$2$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 $14\%,$ will the games be purchased?

Compute the simple rate of return promised by the games. $($Round your answer to $1$ decimal place. i$.$e$.0\mathrm{.}123$ sho

considered as $12\mathrm{.}3\%.)$

Req $2$A Req $2$B

Simple rate of return$\_\_\_\_\_\_\_\_\_\%$