Question

By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine.A. 15.6 percent
B. 1.6 percent
C. 6.4 percent
D. 32 percent
E. 21.3 percent

Answer 1

Answer:

15.6%

Explanation:

Investment = $3200

Net savings = $500

Investment returns in % = Net savings/Investment × 100

= 500/3200 × 100

= 0.15625 × 100

= 15.6%