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 $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 Less operating expenses: Insurance Depreciation $220,000 Commissions to amusement houses $90,000 20,000 21,000 Maintenance 40,000 171,000 Net operating income $ 49,000 Required: 1a. 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. i Reg A Req 18 Compute the payback period associated with the new electronic games. Payback period Years Reg 1A Req 18 >