IThe 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 $300,000, have an eight-year useful life, and have a total salvage value of $30,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses: $200,000 Commissions to amusement houses nsurance $60,000 30,000 33,750 35,000 58750 Maintenance Net operating income $ 41.250