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 amuse follows: its amusement houses. The games would cost a total of $304.000, have an useful life, and have a total salvage value of $30,400. The company estimates that annual revenues and expenses associated with the $ 250,000 Revenues Less operating expenses $90,000 4,000 18240 30,000 Commissions to amusement houses Insurance -192240 s 57760 Maintenance Net operating income 2a. Compute the simple rate of return promised by the games. (Round your answer to i decimal place, ie. 0.123 should be considered as 12.3%.) le rate of return 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased? O Yes O No