Question: IPC Company's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories =

IPC Company's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = $32.0 + 0.125(Sales). The company expects sales of $400 million during the current year, and it expects sales to grow by 20% next year. What is the inventory forecast for next year? All dollars are in millions

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