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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

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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 discount rate for these investments is 11%. The following table summarizes the initial cost and the sale price in three years for each property: Parkside Acres Real Property Estates Lost Lake Properties Overlook Cost Today $590,000 950,000 580,000 90,000 Sale Price in Year 3 $1,090,000 1,550,000 980,000 290,000 Kartman has a total capital budget of 5680,000 to invest in properties. Which properties should it choose? 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 0.14. (Round to two decimal places.) The profitability index for Real Property Estates is 0.06. (Round to two decimal places.) The profitability index for Lost Lake Properties is 0.05. (Round to two decimal places.) The profitability index for Overlook is 0.56. (Round to two decimal places.) Which properties should Kartman Corporation choose? (Select the best choice below.) O A. Real Property Estates OB. Overlook and Parkside Acres OC. Overlook and Lost Lake Properties OD. Lost Lake Properties

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