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exis [7]
3 years ago
14

Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $284,0

00. A new salon will normally generate annual revenues of $60,490, with annual expenses (including depreciation) of $40,800. At the end of 15 years the salon will have a salvage value of $74,000 Calculate the annual rate of return on the project.
Business
1 answer:
Anastaziya [24]3 years ago
7 0

Answer:

11%

Explanation:

The computation of the annual rate of return is shown below:

Annual rate of return = Average annual income ÷average investment

where,

Average investment = (Initial investment + Salvage value) ÷ 2

= ($284,000 + $74,000) ÷ 2

= $179,000

And,

Average annual income is

= $60,490 - $40,800

= $19,690

So, the annual rate of return is

= $19,690 ÷ $179,000

= 11%

We simply applied the above formula

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Answer:

Ukraine wanted to join NATO but Russia sees that as a no-no

Explanation:

facts

3 0
2 years ago
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
liraira [26]

Answer:

The indifference point is 10,000 units.

Explanation:

Giving the following information:

Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00.

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70,000 + 10x= 50,000 + 12x

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8 0
3 years ago
The Typhoon Resort, which has 100 rooms, has currently been experiencing an occupancy dip to a 60.00% level. The current rack ra
BlackZzzverrR [31]

Answer:

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$3,600 / $5,000 = ?%

occupancy rate = 72%

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$3,600 = 100 x ?% x ($72 - $20)

$3,600 = $5,200 x ?%

$3,600 / $5,200 = ?%

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5 0
3 years ago
In the context of product relationships, a _____ is a group of closely related products that are treated as a unit because of a
ololo11 [35]
In the context product relationship, a product line is a group of closely related products that are treated as a unit because of a similar marketing strategy.
PR is to determine the optimum quantity of the variable input that will used in combination with fixed input in order to produce optimal level of output.
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3 years ago
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natka813 [3]

Answer:

Perception

Explanation:

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2 years ago
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