Question
In: Finance
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?
Solutions
jeff jeffy answered 7 months agoRelated Solutions
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