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

Years Project A Project B

$1$ $$316,000\mathrm{.}00$ $$200,000\mathrm{.}00$

$2$ $$350,000\mathrm{.}00$ $$200,000\mathrm{.}00$

$3($$$20,000\mathrm{.}00)($$$15,000\mathrm{.}00)$

$4$ $$280,000\mathrm{.}00$ $$390,000\mathrm{.}00$

The cost of capital for Project A is $13\%$ and the cost of capital for Project B is $15\%.$

Calculate the Discounted Payback Period for Project B$.$

Question $18$Answer

a$.$

$4\mathrm{.}5$ years

b$.$

$3\mathrm{.}6$ years

c$.$

$3\mathrm{.}94$ years