PLEASE USE COMPOUND INTEREST FORMULAS TO SOLVE.

North Plains Biofuels (NPB) has negotiated a contract with an oil firm to sell 150,000 barrels of ethanol per year, beginning at EOY4. The oil firm will pay NPB $10M annually, from EOYO to EOY3 and then $110 per barrel from EOY4 through EOY13. If NPB uses an interest rate of 15%, which method should be used to produce the biofuels? Corn Algae $1,900,000 $3,800,000 $5,300,000 $7,100,000 $2,450,000 $2,800,000 Purchase of land (EOYO) Facility construction (at EOY1) Annual O&M increasing 6% yearly from EOY1 through EOY13 Raw materials (corn or algae) annual increasing 8% yearly from EOY4 through EOY13 Salvage value (EOY13) $1,500,000 $250,000 $3,000,000 $3,600,000 North Plains Biofuels (NPB) has negotiated a contract with an oil firm to sell 150,000 barrels of ethanol per year, beginning at EOY4. The oil firm will pay NPB $10M annually, from EOYO to EOY3 and then $110 per barrel from EOY4 through EOY13. If NPB uses an interest rate of 15%, which method should be used to produce the biofuels? Corn Algae $1,900,000 $3,800,000 $5,300,000 $7,100,000 $2,450,000 $2,800,000 Purchase of land (EOYO) Facility construction (at EOY1) Annual O&M increasing 6% yearly from EOY1 through EOY13 Raw materials (corn or algae) annual increasing 8% yearly from EOY4 through EOY13 Salvage value (EOY13) $1,500,000 $250,000 $3,000,000 $3,600,000