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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
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 $2.02 million $1.03 million $1.49 million 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.) Use of Facility 100% 59% 41%
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To calculate the profitability index PI for each project we use the formula Pr...
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
