Pierre’s hair salon is considering opening a new location in french lick, california. the cost of building a new salon is $270,000. a new salon will normally generate annual revenues of $65,850, with annual expenses (including depreciation) of $39,900. at the end of 15 years the salon will have a salvage value of $76,000.
calculate the annual rate of return on the project. (round answer to 0 decimal places, e. g. 125.)

15%

Explanation:

The formula to compute the accounting rate of return or annual rate of return is shown below:

= Annual net income ÷ average investment

where,  

Annual net income equal to

= Annual revenues - annual expenses

= $65,850 - $39,900

= $25,950

And, the average investment would be

= (Initial investment + salvage value) ÷ 2

= ($270,000 + $76,000) ÷ 2

= $346,000 ÷ 2

= $173,000

Now put these values to the above formula  

So, the rate would equal to

= $25,950 ÷ $173,000

= 15%

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy

answer; whoever is willing and able to pay the price;