Nicks Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $392,000, have an fifteen-year useful life, and have a total salvage value of $39,200. The company estimates that annual revenues and expenses associated with the games would be as follows:

Revenues	$300,000
Less operating expenses:	$225,520
Commissions to amusement houses	$90,000
Insurance	$72,000
Depreciation	$23,520
Maintenance	$40,000
Net operating income	$74,480

1a.

Compute the pay back period associated with the new electronic games.

investment required	/	annual net cash inflow	=	payback period
???	/	????	=	????years