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 $225,000, have an fifteen-year useful life, and have a total salvage value of $22,500. 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 $70,000 insurance 25,000 depreciation 13,500 maintenance 80,000 188,500 net operating income $31,500 required: a. compute the pay back 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. would the company purchase the new games? i. yesii. no