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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 A, B, C

NPV $ 1.96 million $ 0.97 million $ 1.48 million

Use of Facility 100 % 54 % 46 %

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

b. What should Fabulous Fabricators​ do?

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