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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 NPV $1.95 million
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV $1.95 million $0.99 million $1.47 million Use of Facility 100% 54% 46% 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 Cis (Round to two decimal places.) b. What should Fabulous Fabricators do? (Select the best choice below.)
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