Old MathJax webview

Old MathJax webview

Create a business memo.

Question: Use Annual worth and Rate of return answers to justify why company (a) should pick either corn or algae to produce biofuels.

create a business memo

Purchase of land (EOYO) Facility Construction (EOY1). Annual O&E (EOY4) Raw Materials (EOY4) Salvage value (EOY13) Corn $1,9000,000 $5,300,000 $2,450,000 $1,500,000 $3,000,000 Algae $3,800,000 $7,100,000 $2,800,000 $250,000 $3,600,000 = Return: on corn = rate of return x annual worth = 19% X $10,842,971.58 = $ 2,060,164.60 On algae = rate of return x annual worth = 15% X $10,837,421.59 = $ 1,625,613.24 Hence choosing corn would give more return to the company. Answer - corn =