Required Information Exercise 14-8 (Algo) Payback Period and Simple Rate of Return [LO14-1, LO14-6] [The following information applies to the questions displayed below.] Nick's Novelties, Incorporated, Is considering the purchase of new electronic games to place in Its amusement houses. The games would cost a total of $320,000, have a fifteen-year useful life, and have a total salvage value of $32,000. The company estimates annual revenues and expenses assoclated with the games 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 12%, 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. Note: Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%
Other questions asked by students
Stock Market Valuation and Success - IPO The business I’ve chosen is DocuSign Inc (DOCU). The...
Discuss the concept of radial patterning and its application to epidermal and vascular development.
After the PICmicro code has been written, compiled, assembled and linked, what tools in the MPLAB...
3 Here is a table showing the auction prices of a collection of very rare...
math test is There are 6 colored pencils and 8 markers in Cameron s art...
5 Solve the triangle rounding to the nearest tenth assuming a is opposite side a...
Frances sold 100 shares of Fine Corporation common stock for $4,200. She had paid $3,000...