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Calculate the annual rate of return on the project

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Reference no: EM131623794

Question - Pierre's hair Salon in considering opening a new location in French Lick, California. The cost of building a new salon is $300,000. A new salon will normally generate annual revenues of $70,000, with annual expenses (including depreciation) of $41,500. At the end of 15 years the salon will have salvage value of $ 80,000.

Instructions - Calculate the annual rate of return on the project.

Reference no: EM131623794

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