stion list

$2$uestion $1$

Question $3$

Question $4$

Question $5$

Question $6$

Question $7$

Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts:

a$.$ What are the profitability indexes of the projects?

b$.$ What should Fabulous Fabricatorsdo?

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 $C$ is $($Round to two decimal places.$)$

b$.$ What should Fabulous Fabricators do$?($Select the best choice below.$)$

A$.$ Since it has the capacity to do both $B$ and $C$ and $NP{V}_B+NP{V}_C$ is greater than $NP{V}_A,$ it should do both $B$ and $C.$

B$.$ Since the profitability index for $C$ is the largest, it should choose $C.$

C$.$ Since the NPV of $A$ is the largest, it should choose $A.$

$$ D$.$ It should take the two projects with the highest profitability indexes: $C$ and $A.$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

Contract

NPV

Use of Facility

$\backslash$table$[[$A$,$$$1\mathrm{.}97$ million,$100\%$