[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 $425,000, have an 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: $220,000 Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $70,000 25,000 25,500 40,000 160,500 Net operating income $ 59,500 value: 1.00 points Required: 1a. Compute the pay back period associated with the new electronic games. Payback Period 1 Choose Denominator: Choose Numerator: Il Il Payback Period Payback period years Il 16. 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? Yes No