Exercise $14-8($Algo$)$ Payback Period and Simple Rate of Return $[$LO$14-1,$ LO$14-6]$

$[$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 $$720,000,$ have a fifteen$-$year useful life, and have a total salvage value of $$72,000.$ The company estimates that annual revenues and expenses associated with the games would be as follows:

Revenues

Less operating expenses:

Commissions to amusement houses

Insurance

Depreciation

Maintenance

Net operating income

$$250,000$

$\backslash$table$[[$$$80,000,],[40,000,],[43,200,],[40,000,203,200],[,$$$46,800$