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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: B. Kartman has a total capital budget of $660,000 to invest in properties. Which properties should it choose? Data table The profitability index for Parkside Acres is . (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Sale Price in Year 3 Parkside Acres Real Property Estates Cost Today $580,000 970,000 $1,080,000 1,570,000 570,000 970,000 Lost Lake Properties Overlook 80,000 280,000 Print Done
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