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 $720,000, have estimates that annual revenues and expenses associated with the games would be as follows: fifteen-year useful life, and have a total salvage value of $72,000. The company $250,000 Revenues Less operating expenses: Commissions to amusement houses $80,000 40,000 43,200 40,000 Insurance Depreciation 203,200 $ 46,800 Maintenance Net operating income Required a. 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Compute the payback period associated with the new electronic games. years Payback Period Req 1B Reg 1A