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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 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 $2.02 million 100% $1.04 million 58% $1.55 million 42% 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 Ais (Round to two decimal places) The profitability index for contract (Round to two decimal places.) The profitability Index for contract is (Round to two decimal places) b. What should Fabulous Fabricators do? (Select the best choice below) O A It should take the two projects with the highest profitability Indexes C and A OB. Since the NPV of Ais the largest, it should choose A OC. Since it has the capacity to do both Band C and NPV . NPV is greater than NPVA should do both Band OD. Since the profitability index for is the largest, it should choose Click to select your answers)
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