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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 NPV
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract A B NPV $2.04 million $1.02 million $1.53 million Use of Facility 100% 53% 47% a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do? Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,320 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,330 plus an additional investment at the end of the second year of $6,650. What is the NPV of this opportunity if the interest rate is 2.2% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 2.2% per year? The NPV of this opportunity is $| (Round to the nearest cent.)
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