Global Services is considering a promotional campaign that will increase annual credit sales by $420,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: Accounts receivable 4 times Inventory 6 times Plant and equipment 2 times All $420,000 of the sales will be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 71 percent of sales. The cost to carry inventory will be 5 percent ofinventory. Depreciation expense on plant and equipment will be 15 percent of plantand equipment. The tax rate is 25 percent. a. Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. Add the three together. Accounts receivable Inventory Plant and equipment Total Investment b. Compute the accounts receivable collection costs and production and selling costs and then add the two figures together. Collection cost Production and selling costs Total collection, production, and selling costs