Question: QUESTION 1 CPS Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements:

QUESTION 1 CPS Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories - $23.0 +0.125(Sales). The company expects sales of $400 million during the current year, and it expects sales to grow by 25% next year. What is the inventory forecast for next year? All dollars are in millions

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