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please show full working out and accurate answer. Kartman Corporation is evaluating four different real estate investments. Management plans to buy the properties today and
please show full working out and accurate 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 13%. 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
Cost Today
Sale Price in Three Years
$480,000
$900,000
810,000
1,390,000
630,000
1,050,000
120,000
300,000
Kartman has a total capital budget of $810,000 to invest in properties. Which properties should it choose?
The profitability index for Parkside Acres is. (Round to two decimal places.)
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