Required information [The following information applies to the questions displayed below. 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 $20,000, have a fifteen-year useful life, and have a total salvage value of $32,000. The company estimates that annual revenues and expenses associated with the games would be as follows: $230, 000 Revenues Less oper ating expenses: Commissions to amusement houses Insurance Depreciation Maintenance $80, 000 20, 000 19, 200 50, 000 169, 200 60, 800 Net operating income