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 1.98 1 B 1.02 0.53 C 1.51 0.47
a. What are the profitability indexes of the projects? (Round to 2 decimal places)
b. What should Fabulous Fabricators do?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
