Required Information Exercise 14-8 (Algo) Payback period and Simple Rate of Return (L014-1, L014-6) [The following information applies to the questions displayed below) Nick's Noveltles, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $720,000, have a fifteen-year useful life, and have a total salvage value of $72,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $ 250,000 Les operating expenses Come onions to amusement houses $ 80,000 Insurance 40,000 Depreciation 43,200 Maintenance 40.000 203,200 Het operating income $ 46,000 Revenues Exercise 14-8 Part 1 (Algo) Required: 1a. Compute the payback period associated with the new electronic games 16. Assume that Nick's Noveltles, Incorporated, will not purchase new games unless they provide a payback perlod of five years or less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Compute the payback period associated with the new electronic games Payback Porod Yours Reg 18> Required Information Exercise 14-8 (Algo) Payback Perlod and Simple Rate of Return (L014-1, L014-6) (The following information applies to the questions displayed below) Nick's Noveltles, Incorporated, is considering the purchase of new electronic games to place in Its amusement houses. The games would cost a total of $720,000, have a fifteen-year useful life, and have a total salvage value of $72,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenge $ 250,000 Lang operating experiment Comboions to amusement houses Depreciation 43,200 40.000 203, 200 Net operating Income $ 46,800 Tourance 5 80,000 40.000 Maintenance Exercise 14-8 Part 1 (Algo) Required: 1a. Compute the payback perlod associated with the new electronic games. 16. 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. Red IA Reg 13 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? No Yos Reg 1A