Coronado's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $300,000. A new salon will normally generate annual revenues of $64,570, with annual expenses (including depreciation) of $40,000. At the end of 15 years the salon will have a salvage value of $78,000.

Calculate the annual rate of return on the project.

Annual rate of return_________%