CHIA H 3 Ucation.com/ext/map/index.html?_con=con&external browser=0&launchUrl=https%25 2Fims.mheducation.com Sever T points eBook Hint 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 $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: Commissions to amusesent houses Insurance Depreciation Maintenance References Net operating income $ 240,000 $ 70,000 45,000 28,500 30,000 173,500 $ 66,500 Mc Graw Exercise 14-8 Part 1 (Algo) Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Novelties, Incorporated, 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. Req 1A Req 18 Compute the payback period associated with the new electronic games. Payback Period Years Res A Req 18> < Pre 3 of 6 Next > Chrome File Edit View History Bookmarks Profiles INTRO ACCOUNT X M Question 3-CH1 X Tab Window Help ChatGPT Untitled documen CHIH Untitled documen X Dr. David ezto.mheducation.com/ext/map/index.html?_con-con&external browser=0&launchUrishttps%253A%252F%252Flims.mheducation.com 3 points 10 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 $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500, The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating incose $ 240,000 $70,000 45,000 28,500 30,000 173,5ee $ 66,500 Mc Graw Exercise 14-8 Part 1 (Algo) Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Novelties, Incorporated, 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. 10 Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? O ON Req1A >