[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 $432,000, have an eight-year useful life, and have a total salvage value of $43,200. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $230,000 Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $70,000 56,000 48,600 50,000 224,600 Net operating income $ 5,400 2 value: 5.00 points Required 1a. Compute the pay back period associated with the new electronic games Payback Period Choose Numerator: 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 6 years or less. Would the company purchase the new games? 0 Yes