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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 $280,000. A new salon will normally generate annual revenues of $67,320, with annual expenses (including depreciation) of $38,600. At the end of 15 years the salon will have a salvage value of $79,000.

Calculate the annual rate of return on the project.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92795439

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