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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 2.03 1 100% B 1.04 0.58 58% C 1.47 0.42 42%

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