URGENT

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

12%.

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	$540,000		$1,040,000
Real Property Estates	980,000		1,580,000
Lost Lake Properties	530,000		930,000
Overlook	40,000		240,000

Kartman has a total capital budget of

$580,000

to invest in properties. Which properties should it choose?

The profitability index for Parkside Acres is