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 $350,000, have a fifteen-year useful life, and have a total salvage value of $35,000. The company estimates that annual revenues and expenses associated with the games would be as follows: 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 compony purchase the new games? 2a. Compute the simple rate of return promised by the games. 2 b. If the company requires a simple rate of return of at least 12%, will the games be purchased