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

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Pierres Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $31

business accounting

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Answer 1

Answer #1

Annual rate of return

= Net annual income/Average investment

= (68,950 - 40,000) / [(310,000+76,000)/2]

= 28,950/193,000

= 15%

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Answer 2

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