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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: Contract A, B, C

NPV $ 1.96 million $ 0.97 million $ 1.48 million

Use of Facility 100 % 54 % 46 %

a. What are the profitability indexes of the projects?

b. What should Fabulous Fabricators do?

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