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Nicks Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $680,000,

Nicks Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $680,000, have a fifteen-year useful life, and have a total salvage value of $68,000. 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 $ 60,000 Insurance 35,000 Depreciation 40,800 Maintenance 70,000 205,800 Net operat

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