ortal x Course Modules: Managerial Acc X Question 3 - Week 8: Homework X + ps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle omework i Saved Required information [The following information applies to the questions displayed below.] Nick's Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $240,000, have a fifteen-year useful life, and have a total salvage value of $24,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 250, 000 Less operating expenses: Commissions to amusement houses $ 90, 000 Insurance 30, 000 Depreciation 14, 406 Maintenance 70, 000 204, 400 Net operating income $ 45, 600 Required: la. Compute the payback period associated with the new electronic games. b. Assume that Nick's Novelties, Incorporated, 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. Req 1A Req 1B Compute the payback period associated with the new electronic games. Payback Period Years Req 1A Req 1B > SearchCourse ://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmid mework i Saved Required information [The following information applies to the questions displayed below.] Nick's Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $240,000, have a fifteen-year useful life, and have a total salvage value of $24,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 250, 000 ess operating expenses : Commissions to amusement houses $ 90 , 000 Insurance 30,000 Depreciation 14, 400 Maintenance 70, 000 204, 400 Net operating income $ 45 , 600 Required: 1a. Compute the payback period associated with the new electronic games. b. Assume that Nick's Novelties, Incorporated, 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. Req 1A Req 1B Assume that Nick's Novelties, Incorporated, will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games? Yes ONO Search L O - B O Cto.mheducat work i Saved Required information [The following information applies to the questions displayed below.] Nick's Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $240,000, have a fifteen-year useful life, and have a total salvage value of $24,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 250, 000 Less operating expenses: Commissions to amusement houses $ 90, 000 Insurance 30 , 000 Depreciation 14, 400 Maintenance 70, 000 204, 400 Net operating income $ 45, 600 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased? Complete this question by entering your answers in the tabs below. Req 2A Req 2B If the company requires a simple rate of return of at least 12%, will the games be purchased? OYes ONO Search L