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Homework: Chapter 8 Homework (Copy) Save Score: 0 of 5 pts 10 of 10 (9 complete) HW Score: 87.5%, 43.75 of 50 pts P 8-36

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Homework: Chapter 8 Homework (Copy) Save Score: 0 of 5 pts 10 of 10 (9 complete) HW Score: 87.5%, 43.75 of 50 pts P 8-36 (book/static) Question Help 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 $2.00 million $1.00 million $1.50 million Use of Facility 100% 60% 40% 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.)

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