everything is solved, just need help with the new rate of return.

Apollo Data Systems is considering a promotionai campaign that will increase annual credit saies 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 turnover for each is as follows: a All $548,000 of the sales will be collectible. However, collection costs will be 4 percent of sales, and production and selling costs will 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 recelvabie, inventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made? 9. If the firm has required return on investment of 14 percent, should it undertake the promotional campaign described throughout this problem? Yos No Problem 7.27 In the previous problem, if inventory had only been 2 times: a. What would be the new value for inventory investrient? inventory investment s b. Wmat would be the retum on investment? You need to tecompute the total investment and the total costs of the campaign to work toward computing income after tames (Round the final answer to 1 decimal place) Rate of return b. 2 stroutd the campaign be undertaken? b. Compute the accounts receivable collection costs and production and selling costs and add the two figures together. c. Compute the costs of carrying inventory. Cost of earrying imentory d. Compute the amortization expense on new plant and equipment. Amorization expense e. Add together alt the costs in parts b, c, and d Total cost 5