Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: ${?}^1.$

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 $A$ is

$($Round to two decimal places.$)$

The profitability index for contract $B$ is

$($Round to two decimal places.$)$

The profitability index for contract $C$ is

$($Round to two decimal places.$)$

b$.$ What should Fabulous Fabricators do$?($Select the best choice below.$)$

A$.$ Since the NPV of $A$ is the largest, it should choose 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 $NP{V}_B+NP{V}_C$ is greater than $NP{V}_A,$ it should do both $B$ and $C.$

D$.$ It should take the two projects with the highest profitability indexes: $C$ and $A.$

$1$: Data Table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$