Required information [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 $680,000, have a fifteen-year useful life, and have a total salvage value of $68,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: Insurance $ 250,000 Commissions to amusement houses $ 60,000 35,000 40,800 Maintenance 70,000 Net operating income 205,800 $ 44,200 Depreciation 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 18 Compute the payback period associated with the new electronic games. Payback Period Years Req 1A Req 1B > Required information [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 amu The games would cost a total of $680,000, have a fifteen-year useful life, and have a total salvage valu company estimates that annual revenues and expenses associated with the games would be as follow Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $ 250,000 $ 60,000 35,000 40,800 70,000 205,800 $ 44,200 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 p less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of m or less. Would the company purchase the new games? ONO Yes < Req 1A Req 18