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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 $1.96 million

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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 $1.96 million $1.03 million $1.52 million Use of Facility 100% 58% 42% 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 Ais The profitability index for contract Bis (Round to two decimal places.) (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.) O A. Since the NPV of A is the largest, it should choose A. OB. Since it has the capacity to do both B and C and NPVA+NPV is greater than NPVA it should do both B and C O C. Since the profitability index for C is the largest, it should choose C OD. It should take the two projects with the highest profitability indexes: Cand A. Click to select your answer(s)

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