Discuss the following statement: “We don’t want individual plant managers to get involved in the firm’s tax position. So instead of telling them to take the pretax cash flows and discount rate of 10% we just tell them to take the pretax cash flows and discount at 15%. With a 35% tax rate, 15% pretax generates approximately 10% after tax.

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup 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 12%. c. why is the answer to part (b) less than the answer to part (a)?