Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract PV of future cash flow Use of capacity $2.00 million Initial investment $1.00 million $0.60 million $0.40 million 100% B $1.00 million 60% $1.50 million 40% Answer: The profitability index for contract Ais (Round to two decimal places.) The profitability index for contract Bis (Round to two decimal places.) The profitability index for contract is (Round to two decimal places.) Which of the following statements best describes what Fabulous Fabricators should do? (Answer "A", "B", "C", or "D") A. It should take the two projects with the highest profitability indexes: C and A. B. Since the profitability index for C is the largest, it should choose C. C. Since it has the capacity to do both B and C and NPVs+NPV is greater than NPVA it should do both B and C. D. Since the NPV of A is the largest, it should choose A