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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

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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 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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