[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 eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: equired: a. Compute the payback period associated with the new electronic games. b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Wou he company purchase the new games? Complete this question by entering your answers in the tabs below. Compute the payback period associated with the new electronic games. Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%