Compute the annual rate of return on the project

Assignment Help Financial Accounting

Reference no: EM13123269

Haley's Hair Salon is considering opening a new location in Pompador, California. The cost of building a new salon is $306,700. A new salon will normally generate annual revenues of $70,700, with annual expenses (including depreciation) of $40,800. At the end of 15 years the salon will have a salvage value of $75,100. Calculate the annual rate of return on the project. (Round answer to 0 decimal places, e.g. 125.)

Reference no: EM13123269

Questions Cloud

Solve the heat equation : Solve The heat equation du/dt = d^2u / dx^2 (note: partial derivatives), u(x, 0) = sin^2(x), u(0, t) = 0, u(Pi, t) = 0, 0

Identify the two principal discounted cash flow methods : Give an example of a situation where transfer pricing might be used and discuss what method a company might choose to calculate it. In your answer, define what a transfer price is, how it can be calculated, and why a company might use it.

Interest using the acquisition method : On January 1, 2009, Glenville Co. acquired 80,000 of the 100,000 shares outstanding in Acron Corp. for $500,000. The fair value of Acron's net assets was $600,000 and Glenville will account for its interest using the acquisition method.

Focus and directrix of parabola and ellipse : Find the equation of a parabola whose vertex is (0,0) and directrix is the line y=3. Find the vertex, focus, and directrix of (x-2)^2=12(y+1). Find the latus rectum and graph the parabola, making sure that all points and axis are labeled.

Compute the annual rate of return on the project : At the end of 15 years the salon will have a salvage value of $75,100. Compute the annual rate of return on the project.

Mean value and graphing : Sketch the Graph of y = cosx in the range -Pi

Compute the test statistic using the p-value approach : Compute the test statistic. At 95% confidence using the p-value approach, test to see if taking the course actually increased scores on the driving exam.

Illustrate what is the cash payback period for this proposal : Instructions (Round cash payback period and rate of return to 2 decimal places. Illustrate what is the cash payback period for this proposal? years

Unrealized losses on available-for-sale securities : Noell Corp. has common stock of $5,500,000, retained earnings of $3,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on available-for-sale securities of $200,000. What is the total amount of its stockholders' equit..

User Account

All Pages