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Nick's Novelties, Inc. is considering the purchase of electronic plnball machines to place in game arcades. The machines would cost total of $522,000, have an elght-year useful life, and have a total salvage value of $40,000. The company estimated that annual revenues and expenses associated with the machines would be as follows: $294, 250 Revenues Operating expenses: Commissions to game arcades Insurance Depreciation Maintenance Net operating income $165,000 6,000 60, 250 18,000 249,250 $ 45,000 Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Requlred: 1-a. Compute the payback period. (Round your answer to 1 decimal place.) Payback period 12.0 years 1-b. Assume that Nick's Novelties, Inc. will not purchase new equipment unless it provides a payback period of 6 years or less. Will th company purchase the plnball machines? Yes No w and 1 2-b. If the company requires a simple rate of return of at least 15%, will the pinball machines be purchased? O No O Yes 3.a. If Nick's Noveltles, Inc. has a discount rate of 12%, what is the NPV of this Investment? (Hint Identify the relevant costs an perform an NPV analysis.) (Negative amount should be Indicated with a mlnus sign. Round discount factor(s) to 3 decimal Net present value 3-b. Should the company purchase the plnball machines? Yes