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 $432,000, have a fifteen-year useful life, and have a total salvage value of $43,200. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 230,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 56,000 Depreciation 25,920 Maintenance 50,000 201,920 Net operating income $ 28,080 os 2a. Compute the simple rate of return promised by the games 2b. If the company requires a simple rate of return of at least 8%, will the games be purchased? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B