Required information Exerclse 14-8 (Algo) Payback Perlod and SImple Rate of Return [LO14-1, LO14-6] [The...
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Required information Exerclse 14-8 (Algo) Payback Perlod and SImple Rate of Return [LO14-1, LO14-6] [The followng information applies to the questions ilsplayed below. Nick's Noveltles, Incorporated, 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 Iffe, and have a total salvage value of $32,500. The company estmates that annual revenues and expenses assoclated with the games would be as follows: Exercise 14.8 Part 2( Algo) 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. 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%.) Complete this question by entering your answers in the tabs below. If the company requires a simple rate of retum of at least 15%, will the games be purchased
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