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

Kartman 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 14%.

The following table summarizes the initial cost and the sale price in three years for each property:

Cost Today

Sale Price in Year 3

Parkside Acres

$640,000

$1,140,000

Real Property Estates

970,000

1,570,000

Lost Lake Properties

630,000

1,030,000

Overlook

140,000

340,000

Kartman has a total capital budget of $780,000 to invest in properties. Which properties should it choose?

The profitability index for Parkside Acres is ?????

The profitability index for Real Property Estates is .????

The profitability index for Lost Lake Properties is .????

The profitability index for Overlook is .???

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