Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It...
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Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract A NPV $2.04 million Use of Facility 100% B $1.05 million 60% C $1.46 million 40% 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 2.02. (Round to two decimal places.) The profitability index for contract B is (Round to two decimal places.) Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract A NPV $2.04 million Use of Facility 100% B $1.05 million 60% C $1.46 million 40% 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 2.02. (Round to two decimal places.) The profitability index for contract B is (Round to two decimal places.)
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