Calculate the annual rate of return on the project

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Reference no: EM13777561

Pierre’s Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $288,100. A new salon will normally generate annual revenues of $64,861, with annual expenses (including depreciation) of $39,500. At the end of 15 years the salon will have a salvage value of $74,200.

Calculate the annual rate of return on the project.

Reference no: EM13777561

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