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Dartford Corporation is evaluating four different real estate investments. Management plans to buy the properties today and sell them three years from today. The annual

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Dartford 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 summarises the initial cost and the sale price in three years for each property: Sale Price in Year 3 Cost Today $570 000 910 000 $970 000 1 510 000 Parkside Acres Precipice Estates East Lake Properties Oceanview 560 000 960 000 420 000 220 000 Dartford has a total capital budget of $790 000 to invest in properties. Which properties should it choose? The profitability index for Parkside Acres is (Round to two decimal places.) The profitability index for Precipice Estates is (Round to two decimal places.) The profitability index for East Lake Properties is . (Round to two decimal places.) The profitability index for Oceanview is (Round to two decimal places.) Which properties should Darford Corporation choose? (Select the best choice below.) A. Precipice Estates OB. Oceanview and East Lake Properties C. East Lake Properties Oceanview and Parkside Arres

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