Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $$600,000.$ The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: $+$ Accounts receivable $5$ X Inventory $8$ x Plant and equipment $2$ x All $$600,000$ of the sales will be collectible. However, collection costs will be $3$ percent of sales, and production and selling costs will be $77$ percent of sales. The cost to carry inventory will be $6$ percent of inventory. Amortization expense on plant and equipment will be $7$ 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. What is the total value of the investment made? b$.$ Compute the accounts receivable collection costs and production and selling costs and add the two figures together. c$.$ Compute the costs of carrying inventory. d$.$ Compute the amortization expense on new plant and equipment. e$.$ Add together all the costs in parts b$,$ c$,$ and d$.$ f$.$ Subtract the answer from part e from the sales figure of $$600,000$ to arrive at income before taxes. Subtract taxes at a rate of $30$ percent to arrive at income after taxes.

g$.$ Divide the aftertax return figure in part f by the total investment figure in part a$.$ If the firm has required return on investment of $12$ percent, should it undertake the promotional campaign described throughout this problem?