Seved Help 17 Required Information (The following information applies to the questions displayed below.) Nick's Novelties, Inc., 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 associated with the games would be as follows: rt 2 of 2 nts $220,000 Revenues Less operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income eBook $60,000 55,000 19,500 40,000 Print 174,500 $ 45,500 eferences 2a. Compute the simple rate of return promised by the games. 2b. If the company requires 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 Reg 28 $220,000 17 Revenues Less operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $60,000 55.000 19,500 40,000 174,500 $ 45,500 Part 2 of 2 points 2. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 15%, will the games be purchased? eBook Complete this question by entering your answers in the tabs below. References Reg 2 Reg 20 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 12,396.) Simple rate of return % Reg 28 > TRA CREDIT PRACTICE PROBLEMS FOR FINAL EX.. Seved Help Save & E $220,000 17 Revenues Loss operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $60,000 55,000 19,500 40.000 174,500 $ 45,500 t 2 of 2 its 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 15%, will the games be purchased? eBook Print Complete this question by entering your answers in the tabs below. ferences Reg 2A Reg 28 If the company requires a simple rate of return of at least 15%, will the games be purchased? ONO Yes