15 - Nick's Novelties Inc is considering the purchase of...

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Nick's Novelties, Inc., is considering the purchase of electronic pinball machines to place in amusement houses. The m total of $640,000, have an 20-year useful life, and have a total salvage value of $20,000. The company estimates that a expenses associated with the machines would be as follows (Ignore income taxes): Revenues $257,000 Less operating expenses: Commissions to amusement houses $37,000 Insurance 87,000 Depreciation 31,000 Maintenance 34,000 189,000 Net operating income $68,000 Requirement 1: (a) Compute the pay back period associated with the pinball machines.
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This note was uploaded on 07/10/2011 for the course ACCTG 201 taught by Professor Wasson during the Spring '03 term at San Diego State.

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15 - Nick's Novelties Inc is considering the purchase of...

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