Question: Chapter 8 | Question 4: Please answer the questions below (see image and empty boxes in the images)! Thank you!: Fabulous Fabricators needs to decide

Chapter 8 | Question 4: Please answer the questions below (see image and empty boxes in the images)! Thank you!:

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 Fabricators do?

Chapter 8 | Question 4: Please answer the questions below (see image

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 Fabricators do? 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 the profitability index for C is the largest, it should choose C. B. It should take the two projects with the highest profitability indexes: C and A. C. Since the NPV of A is the largest, it should choose A. D. Since it has the capacity to do both B and C and NPVB+NPVC is greater than NPVA, it should do both B and C. 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 Fabricators do? 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 the profitability index for C is the largest, it should choose C. B. It should take the two projects with the highest profitability indexes: C and A. C. Since the NPV of A is the largest, it should choose A. D. Since it has the capacity to do both B and C and NPVB+NPVC is greater than NPVA, it should do both B and C

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