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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: NPV $1.96 million $0.97

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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: NPV $1.96 million $0.97 million $1.52 million Contract Use of Facilit 100% 55% 45% 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.) O A. Since it has the capacity to do both B and C and NPVs NPVc is greater than NPVA, it should do both B and C. O B. It should take the two projects with the highest profitability indexes: C and A O C. Since the NPV of A is the largest, it should choose A. O D. Since the profitability index for C is the largest, it should choose C

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