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 $225,000, have an fifteen-year useful life, and have a total salvage value of $22,500. the company estimates that annual revenues and expenses associated with the games would be as follows: revenues $220,000 less operating expenses: commissions to amusement houses $70,000 insurance 25,000 depreciation 13,500 maintenance 80,000 188,500 net operating income $31,500 required: a. compute the pay back period associated with the new electronic games. b. assume that nick’s novelties, inc., will not purchase new games unless they provide a payback period of five years or less. would the company purchase the new games? i. yesii. no

What is the best definition of a conclusion?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?