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 $380,000, have a fifteen-year useful life, and have a total salvage value of $38,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating income Req 1A $ 60,000 65,000 22,800 80,000 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 company purchase the new games? Req 1B $ 300,000 Complete this question by entering your answers in the tabs below. Years 227,800 $ 72,200 Compute the payback period associated with the new electronic games. Payback Period

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 $380,000, have a fifteen-year useful life, and have a total salvage value of $38,000. The company estimates that annual revenues and expenses assoclated with the games would be as follows: ?equired: a. Compute the payback period associated with the new electronic games. b. Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five years or ess. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Compute the payback period associated with the new electronic games. Required: La. Compute the payback period associated with the new electronic games: 10. Assume that 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? Complete this question by entering your answers in the tabs below. Compute the payback period associated with the new electronic games. Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Noveltles, Incorporated, will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Assume that 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