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Required Information [ The following information applies to the questions displayed below. ] Nick's Novelties, Incorporated, is considering the purchase of new electronic games to

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Required Information
[The following information applies to the questions displayed below.]
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 $325,000, have a fifteen-year useful life, and have a total salvage value of $32,500. The
company estimates that annual revenues and expenses assoclated with the games would be as follows:
2a. Compute the simple rate of return promised by the games.
2 b. If the company requlres a simple rate of return of at least 15%, will the games be purchased?
Complete this question by entering your answers in the tabs below.
Req 2A
Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place, i.e.0.123 should be
considered as 12.3%.)
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