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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
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 $ have a fifteenyear useful life, and have a total salvage value of $ The
company estimates that annual revenues and expenses assoclated with the games would be as follows:
a Compute the simple rate of return promised by the games.
b If the company requlres a simple rate of return of at least will the games be purchased?
Complete this question by entering your answers in the tabs below.
Req
Compute the simple rate of return promised by the games. Round your answer to decimal place, ie should be
considered as
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