Fabulous FabricatorsFabulous Fabricators

needs to decide how to allocate space in its production facility this year. It is considering the following​ contracts:

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.

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

b. What should

Fabulous FabricatorsFabulous Fabricators

​do?

Question content area bottom

Part 1

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

The profitability index for contract A is

enter your response here.

** ​(Round to two decimal​ places.)

Part 2

The profitability index for contract B is

enter your response here.

​(Round to two decimal​ places.)

Part 3

The profitability index for contract C is

enter your response here.

​(Round to two decimal​ places.)

Part 4

b. What should

Fabulous FabricatorsFabulous Fabricators

​do?  ​(Select the best choice​ below.)

A.

It should take the two projects with the highest profitability​ indexes: C and A.

B.

Since the NPV of A is the​ largest, it should choose A.

C.

Since it has the capacity to do both B and C and

NPV Subscript Upper B Baseline plus NPV Subscript Upper CNPVB+NPVC

is greater than

NPV Subscript Upper ANPVA​,

it should do both B and C.

D.

Since the profitability index for C is the​ largest, it should choose C.

The profitability index for contract A is(Round to two decimal places.)The profitability index for contract B is(Round to two decimal places.)The profitability index for contract C is(Round to two decimal places.))