Corporation is evaluating four different real estate investments. Management plans to buy the properties today, and sell them three years from today. The annual discount rate for these investments is 15%. The following table summarizes the initial cost and the sale price in three years for each property.

Kar

	Cost (Today)	Sale Price (Year 3)
Parkside Acres	$500,000	$900,000
Real Property Estates	800,000	1,400,000
Lost Lake Properties	650,000	1,050,000
Overlook	150,000	350,000

Corparation has a total capital budget of $800,000 to invest in properties. Use the profitability index to select the properties for investment.