Please show work in Excel

[The following information applies to the questions displayed below.] Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $390,000, have an eight-year useful life, and have a total salvage value of $39,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $220,000 Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $60,000 55,000 43,875 40,000 198,875 Net operating income 21,125 Required: 1a. Compute the pay back period associated with the new electronic games. Payback Period 1 Choose Denominator: Choose Numerator: Payback Period Payback period years 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of 4 years or less. Would the company purchase the new games? OO O No Yes 2a. Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) Simple rate of return % 2b. If the company requires a simple rate of return of at least 15%, will the games be purchased? No Yes