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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
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 $392,000, have an fifteen-year useful life, and have a total salvage value of $39,200. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 270,000 Less operating expenses: $60,000 52,000 23,520 60,000 Commissions to amusement houses 195,520 $ 74,480 Maintenance Net operating income Required information Required 1a. Compute the pay back period associated with the new electronic games. Numerator: | 1 Choose Denominator: Payback Period Payback period - | years
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