[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 $390,000, have an eight-year useful life, and have a total salvage value of $39,000. The company estimates that annual revenues and expenses associated with the games would be as follows $220,000 Less operating expenses Commissions to amusement $60,000 houses Insurance Depreciation Maintenance 55,000 43,875 40,000 198,875 $21,125 Net operating income 2a. Compute the simple rate of return promised by the games. (Round your answer to1 decimal place. i.e. 0.123 should be considered as 12.3%.) Simple rate of return 2b.lf the company requires a simple rate of return of at least 15%, will the games purchased? O No Yes