P 8-36 (similar to) Fabulous Fabricators needs to decide how to allocate space in its...
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P 8-36 (similar to) 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.) (Click on the following icon in order to copy its contents into a spreadsheet.) Contract A NPV $1.96 million $0.99 million $1.47 million Use of Facility 100% 53% 47% B
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