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 can be sold for $0.005 (1/2 cent). Solve, 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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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.