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: Parkside Acres Real Property Estates Lost Lake Properties Overlook The profitability index for Parkside Acres is Cost Today $470,000 860,000 680,000 170,000 Kartman has a total capital budget of $860,000 to invest in properties. Which properties should it choose? Example Get more help. Sale Price in Three Years $930,000 1,420,000 1,080,000 350,000 (Round to two decimal places.) Clear all Check answer

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: Kartman has a total capital budget of $860,000 to invest in properties. Which properties should it choose? The profitability index for Parkside Acres is (Round to two decimal places.)