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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

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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 com 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

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