Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

# I uploaded a document with a question to be answered.

All $520,000 of the sales will be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 72 percent of sales. The cost to carry inventory will be 8 percent of inventory. Depreciation expense on plant and equipment will be 5 percent of plant and equipment. The tax rate is 30 percent.

**a. **Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. Add the three together.

**b. **Compute the accounts receivable collection costs and production and selling costs and then add the two figures together.

**c. **Compute the costs of carrying inventory.

**d. **Compute the depreciation expense on new plant and equipment.

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

**f. **Compute income after taxes.

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

**g-2. **If the firm has a required return on investment of 12 percent, should it undertake the promotional campaign described throughout this problem?

YesNo