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 $320,000, have a fifteen-year useful life, and have a total salvage value of $32,000. The company estimates annual revenues and expenses associated with the games as follows: Revenues Less operating expenses: commissions to amusement houses insurance Depreciation Maintenance wet operating income $230,000 \$ 80,000 20,000 19,200 50,000169,200 $69,800 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume 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. comissions to amusement nouses Insurance Depreciation Maintenance Net operating income $80,060 20,006 19,200 50,060 $60,800169,200 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five years o Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Compute the payback period associated with the new electronic games. Payback Period Years Commissions to amusement nouses Insurance Depreciation Maintenance Net operating income Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume 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