Calculate the annual rate of reurn on the project


Question:

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.

Instructions

Calculate the annual rate of reurn on the project.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Calculate the annual rate of reurn on the project
Reference No:- TGS02046620

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)