34. Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It

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34. Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: NPV Use of Facility A $2 million 100% B $1 million 60% C $1.5 million 40%

a. What are the profitability indexes of the projects?

b. What should Fabulous Fabricators do?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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