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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 15 % . 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 $ 650 comma 000 $ 1 comma 150 comma 000 Real Property Estates 800 comma 000 1 comma 400 comma 000 Lost Lake Properties 650 comma 000 1 comma 050 comma 000 Overlook 150 comma 000 350 comma 000 Kartman has a total capital budget of $ 800 comma 000 to invest in properties. Which properties should it choose? The profitability index for Parkside Acres is enter your response here . (Round to two decimal places.) The profitability index for Real Property Estates is enter your response here . (Round to two decimal places.) The profitability index for Lost Lake Properties is enter your response here . (Round to two decimal places.) The profitability index for Overlook is enter your response here . (Round to two decimal places.)

Which properties should Kartman Corporation choose?(Select the best choice below.)

A. Lost Lake Properties

B. Overlook and Parkside Acres

C. Real Property Estates

D. Overlook and Lost Lake Properties.

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