Pierres hair salon is considering opening a new location in

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Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $313,600. A new salon will normally generate annual revenues of $69,840, with annual expenses (including depreciation) of $40,500. At the end of 15 years the salon will have a salvage value of $77,600.

Calculate the annual rate of return on the project.

Reference no: EM13573393

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