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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 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 $
Sale Price in Three Years: $
Real Property Estates
Cost Today:
Sale Price in Three Years:
Lost Lake Properties
Cost Today:
Sale Price in Three Years:
Overlook
Cost Today:
Sale Price in Three Years:
Find out the property index for all Kartman has a total capital budget of $ to invest in properties. Which properties should it choose?
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