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XYZ Resources last year reported sales of $125 million and an inventory turnover ratio of 2.5. The company is now adopting a new inventory system.

XYZ Resources last year reported sales of $125 million and an inventory turnover ratio of 2.5. The company is now adopting a new inventory system. If the new system is able to reduce the rms inventory level and increase the rms inventory turnover ratio to 3.5 while maintaining the same level of sales, how much cash will be freed up?

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