Please solve WITHOUT EXCEL

6-43 North Plains Biofuels (NPB) has negotiated a con- G tract with an oil firm to sell 150,000 barrels of ethanol per year, for 10 years beginning in end of year (EOY) 4. The oil firm will pay NPB $IOM annually beginning from EOYO to EOY3 and then $110 per barrel. (a) If NPB uses an interest rate of 15%, which method should be used to produce the biofu- els? Annual O&M costs increase 2% per year and raw materials costs 3% per year Corn Algae Purchase of land (EOYO) Facility construction (EOY1) Annual O&M (EOY4) Raw materials (EOY4) Salvage value (EOY13) $1,900,000 $3,800,000 $5,300,000 $2,450,000 $2,800,000 1,500,000 $250,000 $3,000,000 $3,600,000 $7,100,000