PROBLEMS FOR FINAL EX... O Seved Help 6 Required Information (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 $325,000, have a fifteen-year useful life, and have a total salvage value of $32,500. The company estimates that annual revenues and expenses associated with the games would be as follows: of 2 $220,000 Book Revenues Loss operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $60,000 55,000 19,500 40.000 74,500 $ 45,500 rences Required: 1a. Compute the payback period associated with the new electronic games 16. Assume that Nick's Novelties, Inc., 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. Seved ROBLEMS FOR FINAL EX. O Tess operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income Help 16 $60,000 55,000 19,500 40,000 174,500 $ 45,500 Part 1 of 2 Doints Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? eBook Print Complete this question by entering your answers in the tabs below. References Req 1A Reg 1B Compute the payback period associated with the new electronic games. Payback period Years Reg 10 > EDIT PRACTICE PROBLEMS FOR FINAL EX... Saved Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $60,000 55,000 19,500 40,000 174,500 $ 45,500 Required: 1a. Compute the payback period associated with the new electronic games. 16. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. W the company purchase the new games? Complete this question by entering your answers in the tabs below. ces Reg 1A RdA 18 Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less Would the company purchase the new games? Yes No