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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 are the

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?

Contract

NPV

Use of Facility

A

$2.02

million

100%

B

$0.95

million

57%

C

$1.49

million

43%

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