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The following information applies to the questions displayed below Nick's Novelties, Inc. s 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. s considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $350,000, have an fifteen-year useful life, and have a total salvage value of $35,000. The company estimates that annual revenues and expenses associated with the games would be as folows s 220000 operating expenses $ 4%000 2. .00 points Required: 1a. Compute the pay back period associated with the new electronic games. 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games
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