Question
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV Use of
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts:
| Contract | NPV | Use of Facility |
| A | $2.01 million | 100% |
| B | $1.05 million | 54% |
| C | $1.46 million | 46% |
a. What are the profitability indexes of the projects?
b. What should Fabulous Fabricators do?
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Agricultural Finance
Authors: Charles Moss
1st Edition
0415599075, 978-0415599078
