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begin{tabular}{ccc} hline Contract & NPV & Use of Facility hline A & $2.03 million & 100% B & $0.97 million & 59%

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\begin{tabular}{ccc} \hline Contract & NPV & Use of Facility \\ \hline A & $2.03 million & 100% \\ B & $0.97 million & 59% \\ C & $1.48 million & 41% \\ \hline \end{tabular} Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do? a. What are the profitability indexes of the projects? The profitability index for contract A is (Round to two decimal places.) The profitability index for contract B is (Round to two decimal places.) The profitability index for contract C is (Round to two decimal places.) b. What should Fabulous Fabricators do? (Select the best choice below.) A. Since it has the capacity to do both B and C and NPVB+NPVC is greater than NPVA, it should do both B and C. B. Since the NPV of A is the largest, it should choose A. C. It should take the two projects with the highest profitability indexes: C and A. D. Since the profitability index for C is the largest, it should choose C

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