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Dartford Corporation is evaluating four different real estate investments. Problem 8.31 Question Help artford following table summarises the initial cost and the sale price in
Dartford Corporation is evaluating four different real estate investments.
Problem 8.31 Question Help artford following table summarises the initial cost and the sale price in three years for each property: orporation is evaluating our different real estate investments. Management plans o buy the properties today and sell them tree years from today. The annual discount rate or these investments is 13%, The Cost Today $550 000 890 000 540 000 200 000 Sale Price in Year 3 Parkside Acres Precipice Estates East Lake Properties Oceanview $950 000 1 490 000 40 000 400 000 Dartford has a total capital budget of $750 000 to invest in properties. Which properties should it choose? The profitability index for Parkside Acres is (Round to two decimal places.)Step by Step Solution
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