Nick's Novelties, Inc. is considering the purchase of electronic pinball machinest place in game arcades. The machines would cost a total of $380,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimated that annual revenues and expenses associated with the machines would be as follows: Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Compute the payback period. (Round your answer 201 decimal place.) 1-b. Assume that Nick's Novelties, Inc will not purchase new equipment unless it provides a payback period of 4 years or less. Will the company purchase the pinball machines? Yes No No 2-a. Compute the simple rate of return promised by the pinball machines. (Rounc your answer to 1 decimal place. (i.e., 0.1234 should be considered as 12.3\%).) 2-b. If the company requires a simple rate of return of at least 14%, will the pinball machines be purchased? Yes No 3-a. If Nick's Novelties, Inc. has a discount rate of 12%, what is the NPV of this investment? (Hint Identify the relevant costs and then perform an NPV analysis.) (Negative amount should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.) 3-b. Should the company purchase the pinball machines