Required information Exercise 13-8 Payback Period and Simple Rate of Return (L013-1, LO13-6) The frolowing information applies to the questions displayed below) Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The Nick's games would cost a total of $310,000, have a fifteen-year useful life, and have a total salvage value of $31,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses $280,000 Commissions to amusement houses Insurance Depreciation Maintenance $90,000 58,000 18,600 70,000 236 600 Net operating income 43,400 Exercise 13-8 Part 1 Required: Exercise 13-8 Part1 Required 1a. Compute the pay back period associated with the new electronic games. 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback per the company purchase the new games? Complete this question by entering your answers in the tabs below Req 1A Req 18 Compute the pay back period associated with the new electronic games Req 18 )> Exercise 13-8 Part 1 a. Compute the pay back period associated with the new electronic games. b. 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 Req 1A Req 18 Assume that Nick's Novelties, Inc., wil not purchase new games unless they provide a payback period of five years or less OYes No Req 1A