Questions 6-7(of 9) The following information applies to the questions displayed below Nick's Novelties, Inc.,...
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Questions 6-7(of 9) 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 $320,000, have an eight-year useful life, and have a total salvage value of $32.000. The company estimates that annual revenues and expenses associated with the games would be as follows $230,000 Revenues Less operating expenses: Commissions to amusement houses $80,000 Insurance Depreclation Maintenance 20,000 36,000 50,000186,000 Net operating income 44,000 1.5o polnts Required: 1a. Compute the pay back period associated with the new electronic games Payback Peried Payback Period Payback period Choose Numerator: Choose Denominator: years
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