(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 $300.000, have an fifteen-year useful life, and have a total salvage value of $45,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $ 200,000 Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating Income $60,000 40,000 17,000 50,000 167,000 $ 33,000 value: 1.00 points Required information Required: 1a. Compute the pay back period associated with the new electronic games. Payback Period Choose Denominator: Choose Numerator: - Payback Period Payback period years 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? No Yes