1. Toby 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
Yr1	316000	200000
Yr2	350000	200,000
Yr3	(20000)	(15000)
yr 4	280000	390000

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.

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