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Calculate the annual rate of return on the project

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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 $302,800. A new salon will normally generate annual revenues of $63,863, with annual expenses (including depreciation) of $39,000. At the end of 15 years the salon will have a salvage value of $79,700.

Calculate the annual rate of return on the project.

Reference no: EM132105480

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