Kartman Corporation is evaluating four 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
Parkside Acres ..............$ 500,000 ................$900,000
Real Property Estates ...... 800,000 ............... 1,400,000
Lost Lake Properties ........ 650,000 ............... 1,050,000
Overlook ..........................50,000 .................... 350,000
Kartman has a total capital budget of $800,000 to invest in properties. Which properties should it choose?