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 $350,000, have a fifteen-year useful life, and have a total salvage value of $35,000. the company estimates that annual revenues and expenses associated with the games would be as follows: revenues $ 220,000 less operating expenses: commissions to amusement houses $ 90,000 insurance 20,000 depreciation 21,000 maintenance 40,000 171,000 net operating income $ 49,000 a. compute the simple rate of return promised by the games. b. if the company requires a simple rate of return of at least 12%, will the games be purchased?