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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: 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 2.04 1 B 1.03 0.58 C 1.46 0.42

a. What are the profitability indexes of the projects?

b. What should Fabulous Fabricators do?

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