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Please solve by writing out answer Kartman Corporation is evaluating four different real estate investments. Management plans to buy the properties today and sell them
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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 15%. The following table summarizes the initial cost and the sale price in three years for each property Cost Today Sale Price in Year 3 Parkside Acres $580,000 $1,080,000 Real Property Estates 850,000 1,450,000 Lost Lake Properties 570,000 970,000 Overlook 80,000 280,000 Kartman has a total capital budget of $660,000 to invest in properties. Which properties should it choose? OK The profitability index for Parkside Acres is. (Round to two decimal places.) Step by Step Solution
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