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Exercise $12-8($Algo$)$ Payback Period and Simple Rate of Return $[$LO$12-1,$ L$012-6]$

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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 $$332,000,$ have a fifteen$-$year useful life, and have a total salvage value of $$33,200.$ The company estimates that annual revenues and expenses associated with the games would be as follows:

$\backslash$table$[[$Revenues$,,],[$Less operating expenses:,$$280,000,],[$Commissions to amusement houses,$$80,000,],[$Insurance$,57,000,],[$Depreciation$,19,920,],[$Maintenance$,60,000,216,920],[$Net operating income,,$$63,080$