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IThe following information applies to the questions displayed below.j Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement
IThe following information applies to the questions displayed below.j 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 $432,000, have an fifteen-year useful life, and have a total salvage value of $43,200. The company estimates that annual revenues and expenses associated with the games would be as follows: $230,000 Revenues Less operating expenses: Commissions to amusement $70,000 houses 56,000 Insurance Depreciation 25,920 Maintenance 50,000 201,920 28,080 Net operating income
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