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Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past five years, to forecast inventory requirements: Inventories =

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Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past five years, to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $400 million during the current year, and it expects sales to grow by 30 percent next year. What is the inventory forecast for next year? All dollars are in millions. Current year's sales $400 Growth rate 30% Projected sales $520

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