Required information [The following information applies to the questions displayed below.j 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 $320,000, have an eight-year useful life, and have a total salvage value of $32,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses $200,000 Commissions to amusement $60,000 houses Insurance Depreciation Maintenance 30,000 36,000 30,000 156,000 Net operating income 44,000 Required: 1a. Compute the pay back period associated with the new electronic games. Payback Period Choose Numerator: I Choose Denominator:Payback Period Payback period years 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of 8 years or less. Would the company purchase the new games? O Yes O No