Jaguar Biofuels (JB) has negotiated a 13-year contract with an oil firm to sell 150,000 barrels of ethanol per year for 10 years beginning Year 4. The oil firm will pay JB $10M annually from Year 0 to Year 3 and $110 per barrel thereafter. JB will select either a corn or an algae base method to produce the ethanol. The expected increase in annual expenses is 2% per year for corn and the expected decrease in annual expenses is 3% per year for algae. Utilizing an interest rate of 15% and an annual cash flow analysis, determine which method JB should use to manufacture biofuels.

PLEASE DO NOT POST A TABLE AS AN ANSWER.

	Corn	Algae
Annual Revenue (Year 0 to Year 3)	$10,000,000	$10,000,000
Annual Revenue (Year 4 to Year 13)	$110/barrel	$110/barrel
Purchase of land (Year 0)	$1,900,000	$3,800,000
Facility Construction (Year 1)	$5,300,000	$7,100,000
Annual Expenses (Year 4)	$3,950,000	$3,050,000
Salvage Value (Year 13)	$3,000,000	$3,600,000