) Gibson Manufacturing Corporation expects to sell the following number of units of steel cables at the prices indicated, under three different scenarios in the economy. The probability of each outcome is indicated. Probability Outcome A B C 0.40 0.10 0.50 Units 350 600 1,050 Price NUTES) $21 30 35 What is the expected value of the total sales projection?

QUESTION I (3 MARKS; 5 MINUTES) er three different scenarios in the economy. The QUESTION 7 (9 MARKS;15 MINUTES) Manning Alternatives is considering a promotional campaign that will increase annual credit sales by $840,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: It is expected that 4% of the new accounts will be uncollectible. Collection costs will be 5% of sales, and production and selling costs will be 70% of sales. The cost to carry inventory will be 5% of inventory. Amortization expense on plant and equipment will be 9% of plant and equipment. The tax rate is 25%. a. Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made? b. What would be Manning's incremental after-tax return on investment? c. If the firm has required return on investment of 18%, should it undertake the promotional campaign