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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 12%. 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 $640,000 to invest in properties. Which properties should it choose? The profitability index for Parkside Acres is (Round to two decimal places.) The profitability index for Real Property Estates is (Round to two decimal places.) - X Data table The profitability index for Lost Lake Properties is (Round to two decimal places.) The profitability index for Overlook is (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Which properties should Kartman Corporation choose? (Select the best choice below.) O A. Lost Lake Properties Cost Today $570,000 830,000 Sale Price in Year 3 $1,070,000 1,430,000 B. Overlook and Lost Lake Properties Parkside Acres Real Property Estates Lost Lake Properties Overlook C. Real Property Estates 560,000 960,000 D. Overlook and Parkside Acres 70,000 270,000 Print Done

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