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K Karman Corporation is evaluating four different real estate investments. Management plans to buy the properties today and sell them three years from today. The
K Karman 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: Karman Corporation has a total capital budget of $660,000 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 Real Property Estates is. (Round to two decimal places.) The profitability index for Lost Lake Properties is . (Round to two decimal places.) The profitability index for Overlook is (Round to two decimal places.) Which properties should Karman Corporation choose? (Select the best choice below.) A. Overlook and Lost Lake Properties B. Overlook and Parkside Acres OC. Real Property Estates D. Lost Lake Properties
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