[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 a 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 $68, eee 40,000 17, cee se, se 167,000 $ 33,eee Exercise 14-8 Part 1 (Algo) Required: 1a Compute the payback period associated with the new electronic games 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? Required information Required: 1a. Compute the payback period associated with the new electronic games 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? Complete this question by entering your answers in the tabs below. Reg 1A Req 10 Compute the payback period associated with the new electronic games. Payback Period Years Reg 18 > Exercise 14-8 Part 2 (Algo) 2a Compute the simple rate of return promised by the games 2b. If the company requires a simple rate of return of at least 10%, will the games be purchased? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place, le 0.123 should be considered as 12,3%) Simple rate of return % Reg 2 >