12 Required information The following information applies to the questions displayed below) Nick's Novelties, Inc. is considedng the purchase of new electronic games to place in its amusement houses. The games would cost a total of $225,000, have a fifteen-year useful life, and have a total salvage value of $22,500. The company estimates that annual revenues and expenses associated with the games would be as follows: $220,000 Revenues Less operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $70,000 25.000 13,560 80,000 188,500 $ 31,500 Required: la Compute the payback period associated with the new electronic games 1b. Assume that Nick's Novelties, Inc. will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Regt Reg 13 Check the Required information The fowowin information applies to the questiones died below Nicks Novelties Inc. is considering the purchase of new electronic comes to place in amuseenthouse Theme would cost a total of $225.000 have a fifteen year with and have a total salvage of S2200 The company estimates that annual revenues and expenses asociated with the games wow bestow 1900 prinnen Con the Maintana Netline in 1,500 2a. Compute the simple rate of retum promised by the games 25. If the company requires a simple rate of return of the will the games be purchased Complete this question by entering your answers in the tabs below. Ree Reg 2 Comote the simple rate of return promised by the game, and your tot 20.12) had be