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Compute the simple rate of return promised by the games.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 $425,000, have a fifteen-year useful life, and have a total salvage value of $42,500. The company estimates that annual revenues and expenses associated with the games would be as follows:

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Answer

The answer and procedures of the exercise are attached inthe following images.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.

Compute the simple rate of return promised by the games.Nick’s Novelties, Inc., is-example-1
Compute the simple rate of return promised by the games.Nick’s Novelties, Inc., is-example-2
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User Suezy
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