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Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: . a . What
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
Data table
a What are the profitability indexes of the projects?
The profitability index for contract is
Round to two decimal places.
The profitability index for contract is
Round to two decimal places.
The profitability index for contract is
Round to two decimal places.
b What should Fabulous Fabricators doSelect the best choice below.
A Since the profitability index for C is the largest, it should choose C
B Since the NPV of is the largest, it should choose
C Since it has the capacity to do both B and C and is greater than it should do both B and C
D It should take the two projects with the highest profitability indexes: C and A
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