Exercise 12-8 (Video) |x Your answer is incorrect. Try again. Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $310,000. A new salon will normally generate annual revenues of $68,950, with annual expenses (including depreciation) of $40,000. 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. Annual rate of return Click if you would like to Show Work for this question: Open Show Work