Kartman Corporation is evaluating four different real estate investments. Management plans to buy the properties today...
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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 14%. The following table summarizes the initial cost and the sale price in three years for each property:. Kartman has a total capital budget of $540,000 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.) OA. Overlook and Lost Lake Properties B. Lost Lake Properties OC. Real Property Estates OD. Overlook and Parkside Acres b of 1 (Click on the following icon in order to copy its contents into a spreadsheet.) Cost Today $520,000 810,000 510,000 Parkside Acres Real Property Estates Lost Lake Properties Overlook 20,000 Sale Price in Year 3 $1,020,000 1,410,000 910,000 220,000 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 14%. The following table summarizes the initial cost and the sale price in three years for each property:. Kartman has a total capital budget of $540,000 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.) OA. Overlook and Lost Lake Properties B. Lost Lake Properties OC. Real Property Estates OD. Overlook and Parkside Acres b of 1 (Click on the following icon in order to copy its contents into a spreadsheet.) Cost Today $520,000 810,000 510,000 Parkside Acres Real Property Estates Lost Lake Properties Overlook 20,000 Sale Price in Year 3 $1,020,000 1,410,000 910,000 220,000
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