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

question 22

Multiple Choice

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) 1.6 percent
• B) 6.4 percent
• C) 15.6 percent
• D) 21.3 percent
• E) 32 percent

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Definitions:

Personal Income Tax

A tax that individuals pay on their earnings to the government, usually structured in progressive brackets.

Internet Tax Freedom Act

A U.S. law enacted in 1998 that bars federal, state, and local governments from taxing Internet access and imposing discriminatory internet-only taxes such as bit taxes, bandwidth taxes, and email taxes.

Tax Collections

The process of gathering taxes by government authorities from individuals and businesses.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by governmental authorities.