Problem $7-26$Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $$684,000.$ The company has a $60\%$ cost of goods sold and will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows:Accounts receivableInventoryPlant and equipment$5$x$8$x$2$xAll $$684,000$ of the sales will be collectible. However, collection costs will be $4$ percent of sales, and production and selling costs will be $80$ 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 receivable, inventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made?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?Accounts receivableInventoryPlant and equipmentTotal Investmentc.Compute the accounts receivable collection costs and production and selling costs and add the two figures together.Collection costProduction and selling costsTotal costs related to accounts receivableCompute the costs of carrying inventory.Cost of carrying inventoryd. Compute the amortization expense on new plant and equipment.Amortization expense$e$.$ Add together all the costs in parts b$,$ c$,$ and d$.$Total costf$.$ Compute income after taxes.Income after taxesg. If the firm has required return on investment of $10$ percent, should it undertake the promotional campaign described throughout this problem?YesNoProblem $7-27$In the previous problem, if inventory had only been $2$ times:a$.$ What would be the new value for inventory investment?Inventory investment$b$\mathrm{.}1$ What would be the return on investment? You need to recompute the total investment and the total costs of the campaign to work toward computing income after taxes. $($Round the final answer to $1$ decimal place.$)$b$\mathrm{.}1$ What would be the return on investment? You need to recompute the total investment and the total co toward computing income after taxes. $($Round the final answer to $1$ decimal place.$)$Rate of return$\%$b$\mathrm{.}2$ Should the campaign be undertaken?YesNo