Homework Answers
Hello Sir/ Mam
We know that :
(a)
Hence,
| Project | NPV | Use of Facility | PI |
| A | $1.97m | 100.00% | 1.97 |
| B | $1.02m | 60.00% | 1.70 |
| C | $1.52m | 40.00% | 3.80 |
(b) As PI of Project C is highest, Fabolous Fabricatos must go for Project C.
I hope this solves your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
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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 NPV $2.01 million $0.98 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? a. What are the profitability indexes of the projects? The profitability index for contract Ais (Round to two decimal places.)
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 NPV Use of Facility $1.98 million 100% $1.01 million 57% $1.46 million 43% 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 Ais (Round to two decimal places.)
Please answer with work, thank you! Fabulous Fabricators needs to decide how to allocate space in...
Please answer with work, thank you!
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV $2.04 million $1.02 million $1.49 million Use of Facility 100% 57% 43% a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do?
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 $1.97 million $0.96 million $1.49 million Use of Facility 100% 56% 44% 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.)
Help Fabulous Fabricators needs to decide how to allocate space in its production facility this year....
Help Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts Contract A NPV Use of Facility 100% $1.96 million $0.98 million $146 million 44% 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 Bis(Round to two decimal...
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 NPV $1.95 million $1.01 million $1.45 million Use of Facility 100% 52% 48% 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 Ais (Round to two decimal places.) The profitability index for contract Bis (Round to two decimal...
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: NPV $2.03 million $1.04 mllion $1.54 milion Use of Facility 100% 60% 40% Contract a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do?
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Use of Facility 100% NPV Contract $2.05 million A B $0.97 million $1.52 million 57% 43% C a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do?
rt P 8-36 (similar to) Question Help Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: NPV $2.03 million $1.01 million $1.48 million ZA Contract Use of Facility 8,4 A 100% 50% SE C 50% 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...
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Use of Facility 100% 54% 46% NPV $1.98 million $1.03 million $1.51 million Contract A В С a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do?
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV $2.01 million $0.98 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? a. What are the profitability indexes of the projects? The profitability index for contract Ais (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 NPV Use of Facility $1.98 million 100% $1.01 million 57% $1.46 million 43% 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 Ais (Round to two decimal places.)
Please answer with work, thank you!
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV $2.04 million $1.02 million $1.49 million Use of Facility 100% 57% 43% a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators do?
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 $1.97 million $0.96 million $1.49 million Use of Facility 100% 56% 44% 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.)
Help Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts Contract A NPV Use of Facility 100% $1.96 million $0.98 million $146 million 44% 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 Bis(Round to two decimal...
Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts: Contract NPV $1.95 million $1.01 million $1.45 million Use of Facility 100% 52% 48% 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 Ais (Round to two decimal places.) The profitability index for contract Bis (Round to two decimal...
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