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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 16%. 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

$540,000

$1,040,000

Real Property Estates

810,000

1,410,000

Lost Lake Properties

530,000

930,000

Overlook

40,000

240,000

Kartman has a total capital budget of $580,000 to invest in properties. Which properties should it choose?

The profitability index for Parkside Acres is ____ . (Round to two decimal places.)

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