Fabulous Fabricators needs to decide how to allocate space in the production facility this year le considering the following contra What are the profitability indexes of the projects? b. What should Fabulous Fabricators de? What are the probability indexes of the projects? The profitability index for contract A The profitability index for contract D The profitability index for contract Ch Round to two decimal places) Round to two decimal places) b. What should Fabulous Fabrators do? (Select the best choice below) OA It should take the two projects with the highest profitability index C and A OB. Since it has the capacity to do both Band C and NPVNPV is greater than NPV should do and C OC. Since the NPV of A is the largest, it should choose A Oo. Since the profitability indes for C is the largest, it should choose C Data table (Click on the following loon in order to copy s Contract wts to a spreadsheet) Use of Facility 100% 55% 45% $1.46 mon Print Done

Fabulous Fabricators needs to decide how to allocate space in the production facility this year le considering the following contra What are the profitability indexes of the projects? b. What should Fabulous Fabricators de? What are the probability indexes of the projects? The profitability index for contract A The profitability index for contract D The profitability index for contract Ch Round to two decimal places) Round to two decimal places) b. What should Fabulous Fabrators do? (Select the best choice below) OA It should take the two projects with the highest profitability index C and A OB. Since it has the capacity to do both Band C and NPVNPV is greater than NPV should do and C OC. Since the NPV of A is the largest, it should choose A Oo. Since the profitability indes for C is the largest, it should choose C Data table (Click on the following loon in order to copy s Contract wts to a spreadsheet) Use of Facility 100% 55% 45% $1.46 mon Print Done

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Description: KFabulous Fabricators needs to decide how to allocate space in its production facility this year is considering the following contraa. What are the profitability indexes of the projects?b. What should Fabulous Fabricators de?What are the profitabili

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 1ST

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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: a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do? **round to two decimal places**
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