Carla Vista'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 %

Carla Vista'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 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 8P

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