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

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated by dividing the net savings by the investment cost and multiplying by 100. In this case, the ROI is ($500/$3,200) * 100 = 15.6%.

By Investing in a John Deere PowerTech Engine for $3,200