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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
Nicks Novelties, Incorporated, is considering the purchase of new electronic games to
place in its amusement houses. The games would cost a total of
The company
estimates that annual revenues and expenses associated with the games would be as
follows:
Revenues
Insurance
Depreciation
Maintenance
Net operating income $
a Compute the simple rate of return promised by the games.
b If the company requires a simple rate of return of at least will the games be purchased?
Compute the simple rate of return promised by the games. Round your answer to decimal place. ie sho
considered as
Req A Req B
Simple rate of return
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