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 $425,000, have a fifteen-year useful life, and have a total salvage value of $42,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Leas operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $220,000 $70,000 25,000 25,500 40,000 160,500 5:59,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Novelties Incorporated will not purchase new namor unloc 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 Assume that Nick's Novelties, Incorporated, will not purchase new game's unless they provide a payback period of five years or less. Would the company purchase the new games? Yes ONO 2 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 - less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Req 1A Req 1B 7:02 ces Compute the payback period associated with the new electronic games. Payback Period Years Req 18 > 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 11%, will the games be purchased? Complete this question by entering your answers in the tabs below. Req 2A Req 28 If the company requires a simple rate of return of at least 11%, will the-games be purchased? OYes ONO 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 11%, will the games be purchased? Complete this question by entering your answers in the tabs below. Re 2A Req 28 Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.)) Simple rate of return % Req 28>