DO NOT ANSWER IN EXCEL
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
Years
Project A
Project B
Year 1 CashFlow
316,000.00
200,000.00
Year 2 CashFlow
350,000.00
200,000.00
Year 3 CashFlow
(20,000.00)
(15,000.00)
Year 4 CashFlow
280,000.00
390,000.00
The cost of capital for Project A is 13% and...