Revenues $349,000 Operating expenses: Commissions to game arcades $200,000 Insurance Depreciation 7,000 73,750 Maintenance 18,000 298,750 Net operating income $50,250 and incorrect from your previous attempt. Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Compute the payback period. (Round your answer to 1 decimal place.) Payback period 50 years 1-b. Assume that Nick's Novelties, Inc. will not purchase new equipment unless it provides a payback period of 6 years or less. Will the company purchase the pinball machines? Yes No 2-6. Compute the simple rate of return promised by the pinball machines. (Round your answer to 1 decimal place. (i.e., 0.1234 should be considered as 12.3%).) Simple rate of return %