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Katman Corporation is evaluating four real estate investments. Management plans to buy the properties today and sell three years from today. The annual discount rate

Katman Corporation is evaluating four real estate investments. Management plans to buy the properties today and sell 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

Katman has a total capital budget of $800000 to invest in properties. What is the maximum NPV that Katman can achieve?

Cost Today Sale Price in year 3
Parkside Acres $596585 1150000
Real Property Estates 800000 1400000
Lost Lake Properties 650000 1050000
Overlook 150000 350000

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