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(Solution) - Qwest Airlines has implemented a program to recycle all plastic

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Qwest Airlines has implemented a program to recycle all plastic drink cups used on their aircraft. Their goal is to generate $5 million by the end of the recycle program's five-year life. Each recycled cup i can be sold for $0,005 (1 /2 cent).
a. How many cups must be recycled annually to meet this goal? Assume uniform annual plastic cup usage and a 0% interest rate.
b. Repeat Part (a) when the annual interest rate is 15%.
c. Why is the answer to Part (b) less than the answer to Part (a)?

 







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This question was answered on: Jul 11, 2017

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