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 $332,000, have a fifteen-year useful life, and have a total salvage value of $33,200. The company estimates that annual revenues and expenses associated with the games would be as follows: 2a. Compute the simple rate of return promised by the games.
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Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusemen...
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