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What is annual rate of return

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Question - Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $308,000. A new salon will normally generate annual revenues of $67,220, with annual expenses (including depreciation) of $40,200. At the end of 15 years the salon will have a salvage value of $78,000. What is annual rate of return?

Reference no: EM132959236

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