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Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It...

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

contract NPV Use of Facility
A $2.05 Million 100%
B $1.01 53%
C $1.45 47%

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

b. What should Fabulous Fabricators​ do?

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Expert Solution

jeff jeffy answered 8 months ago
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