Hair Fare is considering opening a new hair salon in Pompador, California. The cost of building a

Question:

Hair Fare is considering opening a new hair salon in Pompador, California. The cost of building a new salon is $$250,000$. A new salon will normally generate annual rev- enues of $$70,000$, with annual expenses (including depreciation) of $$40,000$. At the end of 15 years the salon will have a salvage value of $50,000.

Instructions
Calculate the annual rate of return on the project.

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