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 $680,000, have an eight-year useful life, and have a total salvage value of $68,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $250,000 Less operating expenses: $60,000 Commissions to amusement houses Insurance Depreclation Malntenance 35,000 76,500 70,000 241,500 Net operating Income $ 8,500