Required information Exercise 12-8 (Algo) Payback Period and Simple Rate of Return [LO12-1, LO12-6] [The following information applies to the questions displayed below] 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 $350,000, have a fifteen-year useful life, and have a total salvage value of $35,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 220,666 Less operating expenses: Commissions to amusement houses $ 96,666 Insurance 26,660 Depreciation 21,666 Maintenance 40,666 171,666 Net operating income is 49,666 Exercise 12-8 Part 1 (Algo) 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? Complete this question by entering your answers in the tabs below. Req 1A Req lB Compute the payback period associated with the new electronic games. Feynman-ea -- 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? Complete this question by entering your answers in the tabs below. Req 1A Req lB 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? Required information Exercise 12-8 (Algo) Payback Period and Simple Rate of Return [LO12-1, LO12-6] [The following information applies to the questions displayed below. ] 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 $350,000, have a fifteen-year useful life, and have a total salvage value of $35,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 226,666 Less operating expenses: Commissions to amusement houses $ 96,666 Insurance 26,666 Depreciation 21,666 Maintenance 46,666 171,666 Net operating income $ 49.600 Exercise 12-8 Part 2 (Algo) 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased? Complete this question by entering your answers in the tabs below. Reg ZA Reg 23 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 retum - % Exercise 12-8 Part 2 (Algo) 2a. Compute the simple rate of return promised by the games. 2b. lfthe company requires a simple rate of return of at least 12%, will the games be purchased? Complete this question by entering your answers in the tabs below. Req 2A Req 23 If the company requires a simple rate of return of at least 12%, will the games be purchased