Pierres Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $306,200. A new salon will normally generate annual revenues of $63,760, with annual expenses (including depreciation) of $40,900. At the end of 15 years the salon will have a salvage value of $74,800. Calculate the annual rate of return on the project.

Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $306,200. A new salon will normally generate annual revenues of $63,760, with annual expenses (including depreciation) of $40,900. At the end of 15 years the salon will have a salvage value of $74,800. Calculate the annual rate of return on the project. (Round answer to 0 decimal places, e.g. 125.) Annual rate of return 0 0