Question: For each situation, compute the required amount using the tables in this appendix. 1. XS Technologies Inc.'s operations are generating excess cash that will be

For each situation, compute the required amount using the tables in this appendix.

1. XS Technologies Inc.'s operations are generating excess cash that will be invested in a special fund. During 2017, XS Technologies invests $12,000,000 in the fund for a planned advertising campaign for a new product to be released six years later, in 2023. If XS Technologies's investments can earn 5 percent each year, how much cash will the company have for the advertising campaign in 2023?

2. XS Technologies Inc. will need $20 million to advertise a new product in 2019. How much must XS Technologies invest in 2017 to have the cash available for the advertising campaign? XS Technologies's investments can earn 5 percent annually.

3. Explain the relationship between your answers to (1) and (2).

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