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 | $0.96 million | 58% |
| C | $1.46 million | 42% |
a. What are the profitability indexes of the projects?
b. What should Fabulous Fabricators do?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
