Exerclse $12-8($Algo$)$ Payback Perlod and SImple Rate of Return $[$LO$12-1,$ LO$12-6]$

$[$The following information applies to the questions displayed below.$]$

Nick's Novelties, Incorporated, is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $$672,000,$ have a fifteen$-$year useful life, and have a total salvage value of $$67,200.$ 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

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