everuthing is calculated, just need help finding the rate of return - b.1

b. Compute the accourts receivable collection costs and production and sellinn rosts and add the two figures togethet. c. Compute the costs of carrying inventory Cont def carrvina invention Amortization expense 5 9. If the firm has required return on investment of 14 percent, should it undertake the promotional campaign described throughout this problem? Yes No Problem 7-27 In the previous problem, if inventory had only been 2 times: a. What would be the new value for inventory investment? Inventory investment s b.t What would be the return on thvestment? You need to recompute the total investment and the total costs of the campaign to work foward computing income after tases. (Plound the finat answer to 1 decimal place.) Rate of return \% b. 2 Should the campaign be undertaben? Apolio Date Systems is considering a promotional campaign that will increase annual credit sales by $548,000. The company has a 60% cost of goods sold and will require investments in accounts receivable, inventory, and plant and equipment. The fumover for cach is as follows: All $548,000 of the sales will be collectible. Hewever, collection costs will be 4 percent of sales, and production and selling casts wili be 72 percent of sales. The cost to carry inventory will be 10 percent of inventory. Amortization expense on plant and equipment will be 4 percent of plant and equipment. The tax rate is 30 percent. inventory is calculated using cost of goods sold and not sales. a. Compute the investments in accounts recelvable, imventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made