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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 $

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 $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows:
\table[[Revenues,$200,000,],[Less operating expenses:,$100,000,],[Commissions to amusement houses,7,000,],[Insurance,35,000,],[Depreciation,18,000,160,000],[Maintenance,,$40,000
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