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Assume that Zybo, Inc. has sales of $10 million and inventory of $2 million. The corporation utilizes the percent-of-sales method of financial forecasting. If Zybo is expected to generate sales of $14 million next year, what will the firm's investment in inventory be?
Answer
$2.8 million
$2.0 million
$1.4 million
None of the above
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