Pierre’s Hair Salon is considering opening a new location in French Lick, California

Accounting Apr 26, 2021

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. (Round answer to 0 decimal places, e.g. 125.)

Annual rate of return