[The following information applies to the questions displayed below) Nick's Novelties, incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $425,000, have a 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 Revenues $ 220,000 Less operating expenses: Commissions to amusement houses 5.78.000 Insurance 25,000 Depreciation 25, see Maintenance 40.oee 160,500 Net operating income $ 59,500 Required: 1a. Compute the payback period associated with the new electronic games 1b. Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? Required: fa. Compute the payback period associated with the new electronic games. 1b. Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five yea less. Would the company purchase the new games? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Compute the payback period associated with the new electronic games. Payback Porod Years ROHA Req 1B >