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Calculating annual rate of return

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Mane Event is considering opening a new hair salon in Pompador, California. The cost of bulding a new salon is $300,000. A new salon will normally generate annual revenues of $70,000, with annual expenses (including depreciations) of $40,000. At the end of 15 years the salon will have a salvage value of $75,000.

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Calculate the annual rate of reurn on the project.

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The response helps in calculating annual rate of return.

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Mane Event is considering opening a new hair salon in Pompador, California. The cost of bulding a new salon is $300,000. A new salon ...

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