Help me answer this question please

Nick's Novelties, Inc. is considering the purchase of electronic pinball machines to place in game arcades. The machines would cost a total of $480,000, have an eightyear useful life, and have a total salvage value of $40,000. The company estimated that annual revenues and expenses associated with the machines would be as follows: Revenues $239,888 Operating expenses: Commissions to game arcades $165,888 Insurance 6,888 Depreciation 55,888 Maintenance 18,888 244,888 Net operating income S 45,888 Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor{s) using tables. Required: 1-a. Compute the payback period. (Round your answer to 1 decimal place.) years 1-b. Assume that Nick's Novelties, Inc. will not purchase new equipment unless it provides a payback period of 6 years or less. Will the company purchase the pinball machines? 0 Yes 0 No 2-a. Compute the simple rate of return promised bythe pinball machines. [Round your answeruo 1 decimal place. (i.e., 0.1234 should be considered as 12.3%}.) _:|E 2-b. If the company requires a simple rate of return of at least 15%, will the pinball machines be purchased? 0 No D Yes 3-a. If Nick's Novelties, Inc. has a discount rate of19%,what is the NPU ofthis investment? {Hint Identify the relevant costs and then perform an NPV analysis.) [Negative amount should be indicated with a minus sign. Round discount factorlsl to 3 decimal places.] _:| EM). Should the company purchase the pinball machines? 0 No D Yes