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 | $2.04 million | 100% |
| B | $0.99 million | 57% |
| C | $1.52 million | 43% |
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.)
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
