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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

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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 houses. The games would cost a total of $365,000, have a fifteen year useful life, and have a total salvage value of $36,500 The company estimates that annual revenues and expenses associated with the games would be as follows Revenues Less operating expenses Commissions to amusement houses Insurance Depreciation Maintenance Net operating income 5250,000 $80,000 67,000 21,900 30,000 198,900 $ 51,100 Required: 1a Compute the payback 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? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Compute the payback period associated with the new electronic games. Payback penod Years RUTA Reg 1B > [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 $365,000, have a fifteen year useful life, and have a total salvage value of $36,500. The company estimates that annual revenues and expenses associated with the games would be as follows Revenues Less operating expenses: Comissions to amusement houses Insurance Depreciation Maintenance Net operating income $250,000 $80,000 67,000 21,900 30,000 198,900 $ 51,100 Required: 1a. Compute the payback period associated with the new electronic games 1b Assume thot 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? Complete this question by entering your answers in the tabs below. Reg 1A Reg 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? Ores ONO

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