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 $392,000, have an eight-year useful life, and have a total salvage value of $39,200. The company estimates that annual revenues and expenses associated with the games would be as follows: $300,000 Revenues Less operating expenses: Commissions to $90,000 amusement houses Insurance Depreciation Maintenance 72,000 44,100 40,000 246,100 Net operating income $ 53,900 Required 1a.Compute the pay back period associated with the new electronic games Choose Numerator: Payback Perio Choose Denominator: Payback Period Payback period yea 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? O Yes O No