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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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