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Solve the problem Kartman Corporation is evaluating four different real estate investments, Management plans to buy the properties today and sell them three years from
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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 Parkside Acres Real Property Estates Lost Lake Properties Overlook Cost Today $620,000 860,000 610,000 120,000 Sale Price in Year 3 $1,120,000 1,460,000 1.010.000 320,000 Kartman has a total capital budget of $740,000 to invest in properties. Which properties should it choose? .. The profitability index for Parkside Acres is (Round to two decimal places.) The profitability index for Real Property Estates is (Round to two decimal places.) The profitability index for Lost Lake Properties is . (Round to two decimal places.) The profitability index for Overlook is (Round to two decimal places.) Which properties should Kartman Corporation choose? (Select the best choice below.) O A. Real Property Estates OB. Overlook and Lost Lake Properties O C. Lost Lake Properties OD. Overlook and Parkside AcresStep by Step Solution
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