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 $385,000, have a fifteen-year useful life, and have a total salvage value of $38,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: $ 280,000 Commissions to amusement houses. Insurance $ 80,000 53,000 Depreciation Maintenance 23,100 70,000 226,100 Net operating income $ 53,900 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased? Answer is not complete. Complete this question by entering your answers in the tabs below. Return to que