Management is considering two hotel projects. Project A will be in Belize and Project B will be in Cuba. Initial Investment Project A US$ Project B US$ Year 0 865,000 750,000.00 Year 1 316,000...

1. Management is considering two hotel projects. Project A will be in Belize and Project B will be in Cuba.

 The cost of capital for Project A is 12% and the cost of capital for Project B is 18%.    Calculate;

1. The discounted payback period and The net present value for Project A


2. The discounted payback period and The net present value for Project A


3. The IRR for Project A & Project B


4. If the projects are mutually exclusive which project should be selected?

1. Mangement is considering two hotel projects. Project A will be in Jamaica with an intial investment of $865,000 and Project B will be in Canada with an initial investment of $750,000

The cost of capital for Project A is 13% and the cost of capital for project B is 15%.
Calculate the following;

1. Calculate the discounted payback period of Project A


2. Calculate the discounted payback period of Project B.


3. Calculate the net present value for Project A


4. Calculate the net present value for Project B.

1. Management can only accept one project. Which project should management accept? Explain your answer