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The folowing nfomatis The following information applies to the questions Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its

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The folowing nfomatis The following information applies to the questions 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 $310,000, have an fifteen-year useful life, and have a total salvage value of $31,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues Less operating expenses $ 280,000 Commissions to amusement houses Insurance Depreciation Maintenance $90,000 58,000 18,600 70,000 236,600 $ 43,400 Net operating income 2. 100 points value Required information

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