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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 $

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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 $320,000, have a fifteen-year useful life, and have a total salvage value of $32,000. The company estimates annual revenues and expenses associated with the games as follows:
Revenues
Less operating expenses:
$230,000
Commissions to amusement houses
Insurance
Depreciation
Maintenance
Net operating income
\table[[$80,000,],[20,000,],[19,200,],[50,000,169,200],[,$60,800
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