Question: bulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: What are the
bulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: What are the profitability indexes of the projects? What should Fabulous Fabricators do? What are the profitability indexes of the projects? profitability index for contract A is (Round to two decimal places.) profitability index for contract B is (Round to two decimal places.) profitability index for contract C is (Round to two decimal places.) What should Fabulous Fabricators do? (Select the best choice below.) A. It should take the two projects with the highest profitability indexes: C and A. B. Since the profitability index for C is the largest, it should choose C. C. Since it has the capacity to do both B and C and NPV + NPVC is greater than NPVA, it should do both B and C. D. Since the NPV of A is the largest, it should choose A.
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