[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 $432,000, have an fifteen-year useful life, and have a total salvage value of $43,200. The company estimates that annual revenues and expenses associated with the games would be as follows: 230,000 Revenues Less operating expenses: 70,000 Commissions to amusement houses 56,000 Insurance 25,920 Depreciation 50,000 201,920 Maintenance 28,080 Net operating income