Global Services is considering a promotional campaign that will increase annual credit sales by $480,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows:

Accounts receivable	6	times
Inventory	12	times
Plant and equipment	4	times

All $480,000 of the sales will be collectible. However, collection costs will be 4 percent of sales, and production and selling costs will be 77 percent of sales. The cost to carry inventory will be 4 percent of inventory. Depreciation expense on plant and equipment will be 5 percent of plant and equipment. The tax rate is 25 percent.

e.	Compute the total of all costs from parts b through d.

Total costs

$

f.	Compute income after taxes.

Income after taxes

$

g-1.	What is the aftertax rate of return? (Input your answer as a percent rounded to 2 decimal places.)

Aftertax rate of return

%