4) A drum school opens up a new branch location. It has to spend $250,000 on renovations, $120,000 on drum equipment whi

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4 A Drum School Opens Up A New Branch Location It Has To Spend 250 000 On Renovations 120 000 On Drum Equipment Whi 1 (428.71 KiB) Viewed 26 times

4) A drum school opens up a new branch location. It has to spend $250,000 on renovations, $120,000 on drum equipment which will last 3 years before it wears out and then need to be replaced, and another $60,000 on a one-time advertising campaign to promote the new branch. Once it opens, each month the location will take in in an average of $45,000 of revenue, while it spends $8,000 on rent, $14,000 on salaries and $3,000 of other expenses. Calculate the rate of return that the drum school gets on opening a new branch, rounding if necessary to the nearest 0.1%.