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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:
Cost Today
Sale Price in Three Years
Parkside Acres
Cost Today $410,000
Sale Price in Three Years: $850,000
Real Property Estates
Cost Today: 850,000
Sale Price in Three Years: 1,430,000
Lost Lake Properties
Cost Today: 640,000
Sale Price in Three Years: 1,040,000
Overlook
Cost Today: 160,000
Sale Price in Three Years: 380,000
Find out the property index for all 4. Kartman has a total capital budget of $850,000 to invest in properties. Which properties should it choose?

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