MU Exercise 14-8 (Algo) Payback period and Simple Rate of Return (L014-1, LC14-6) The following information applies to the questions displayed below) 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 $310,000, have a fifteen year useful life, and have a total selvage value of $31.000. Tho company estimates that annual revenues and experisos associated with the games would be as follows: 3280,000 Revenge Less operating expenses Commission to ansettent houses Insurance Depreciation Maintenance Net operating income $90,000 58,000 18,600 70,000 236,500 $43,400 Exercise 14-8 Part 1 (Algo) Required: 1a. 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 comnany purchase the new cames? Required: 1a. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Compute the payback period associated with the new electronic games. Payback Period Years ROGIA Reg 1B >