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Use AW (annual worth) and ROR (rate of return) analysis to solve the problem. Use EXCEL to display all of your formulas and provide detailed

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Use AW (annual worth) and ROR (rate of return) analysis to solve the problem. Use EXCEL to display all of your formulas and provide detailed explanations. Question: (NPB) has negotiated a 10-year contract with an oil company to sell 150,000 barrels of ethanol per year beginning at the end of the fiscal year (EOY) 4. The oil company will pay NPB $10 million per year from EOYO to EOY3, and then $110 per barrel. 1) Which method should be used to produce biofuels if the NPB uses a 15% interest rate? Annual O&E costs rise by 2% per year, while raw material costs rise by 3% per year. Biodiesel Purchase of Lond (Eoyo) Green Diesel $1.900,000 $3.800,000 Facility Construction (Eoyl) $5,300,000 $7,100,000 Annual O and E (E0y4) 1$2,450,000 |$2,800,000 Raw 1$ 1.500.000 $250,000 Materials (Eoyu) Salvage valve (E0413) 1$3,000,000 $3,600,000

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