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

Pierre’s Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $296,400. A new salon will normally generate annual revenues of $68,035, with annual expenses (including depreciation) of $40,000. At the end of 15 years the salon will have a salvage value of $77,400.

Calculate the annual rate of return on the project. (Round answer to 0 decimal places, e.g. 125.)

Annual rate of return %

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