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What would be the annual net cash inflow? How do you calculate it? [The follow2ng information applies to the guestions displayed below. I he games

What would be the annual net cash inflow? How do you calculate it?

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[The follow2ng information applies to the guestions displayed below. I he games would cost a total or $680 0 have an tirteen year userul lite, and have a total salvage value of $68,000. The Nick's Novelties. Inc is considering the purchase of new coctronic games to place in its amusemen houses company estimates that annual revenues and expenses as5oclated with the games would be as folloW5 Revenues l essperating expenses S 250,000 Commissions to amusement houses Insurance Depreciation Maintenance $60,000 35,000 40,800 70,000 205,800 5 11,200 Not operating Income Required Information 1.00 points Required: 1a. Compute the pay back period associated with the new electronic games. Choose Numerator: Choose Denominator: Payback Period nvestment required nual net cash inlow -Payhack period 680,000 S 92 20D- 2 years

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