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 | $ 2.05$2.05 million | 100 %100% |
| B | $ 0.97$0.97 million | 51 %51% |
| C | $ 1.46$1.46 million | 49 %49% |
a. What are the profitability indexes of the projects?
b. What should Fabulous Fabricators do?
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Fundamentals Of Investments
Authors: Bradford Jordan, Thomas Miller
4th Edition
0073314978, 9780073314976
