Depreciation Maintenance 13, 500 let operating incone 88,000. 188,500 $31,500 Required: 10. Compute the payback period associated with the new electronic games 1b. Assume Nick's Novelties, Incorporated, will not purchase new games uniess they provide a payback period of five years or less Would the company purchose the new gomes? Complete this question by entering your answers in the tabs below. Assume 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? Maintenance Net operating income 80,000188,50031,500 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 13%, will the games be purchased? Complete this question by entering your answers in the tabs below. Required 28 Compute the simple rate of return promised by the games. Note: Round your answer to 1 decimal place, 1,e. 0.123 should be considered as 12.3%. simple rate of return % Required information [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 $225,000, have a fifteen-year useful life, and have a total salvage value of $22,500. The company estimates annual revenues and expenses associated with the games as follows: Revenues less operating expenses: commissions to anaseant houses Insurance Depreciation Maintenance wet operating income $220,000 \& 79,000 25,000 13,500 80,000 188,500531,500 Required: 1a. Compute the poyback period ossociated with the new electronic games Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Depreciation Maintenance \begin{tabular}{rr} 13,500 & 188,500 \\ 83,000 \\ \hline \end{tabular} Net operating income Required: 10. Compute the payback period associated with the new electronic games. 1b. Assume Nick's Novelties, Incorporated, will not purchase new games unless they provide o poyback period of five years or less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Required 1B Compute the paybock period associated with the new electronic games. Payback Period Years Maintenance Net operating incose 80,000188,500$31,500 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 13%, will the games be purchased? Complete this question by entering your answers in the tabs below. If the company requires a simple rate of return of at least 13%, will the games be purchased