Required Informatlon Exerclse 13-8 Payback Perlod and SImple Rate of Return [Lo13-1, L013-6] [The following Information apples to the questions displayed below] Nick's Noveltles, Inc., Is considering the purchase of new electronic games to place In its amusement houses. The games would cost a total of $300,000, have a fifteen-year useful life and have a total salvage value of $30,000. The company estimates that annual revenues and expenses assoclated with the games would be as follows: Revenues $2ee,e00 Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $60,eee 3e,eee 18,8ee 35,8e 143,000 $57,e06 Net operating income Exercise 13-8 Part 2 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 11%, will the games be purchased? Complete this question by entering your answers in the tabs below Req 2B 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%.) e rate of return K Req 2A Req 2B > Req 2B Req 2A If the company requires a simple rate of return of at least 11%, will the games be purchased? Yes ONo