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Fabulous Fabricakors neess to decide bow to allocale space is its production fackty fis yeat it is corsidering the folbaing ceraracts: a. What are the profitabicy indexes of the propets? b. What shouid Fabulous Fabricators do? a. What are the srofitablity indexes of ene projects? The prof tability index for careract A ia (Rtund to tao oecimal plates) You need a parficular pioce of equipment foc your production proces. An equipment tesesing company has offered to labse the equigment to you for s9, soo per year if you sign a quaratheed 5 year lease (the hase is fadd at the end of each year). The company would also maintain the equipment lor yes as pert of the lease. Aternatirely. you couid twy and mantain the equipment yourself The cash fisws trom doing se are lsted here: (the equement has an economic ite of 5 years) y your dscount fale is 6.6%, what should you da? The net present value of the leasing altomatlue ia 1 (Rhernd io the nearos dolias.) You are considering makng a movie. The movie is expectad to cont $10.9 milion up trond and lake a year to produce. Aher inat, it is eupected to meke 34.1 millon in the year it is feitased and 51.6 What is the payeack persd of thi investrien? The paysisk petod is years. (Round to one decimal place) You have just been offered a contract worth $1.16 milion per year for 7 yeans. Hewever, to take the contract, yeu will need to purchase some new equiptrent, Your discourt rahe for this project is 12.22. You ere stili nepotiating the purchase price of he equipment. What is the most yeu can pay for the equpmant and stis have a pos tive NPV? The most you can pay for the eesibment and acheve the 12.2% arcual rotum is 4 millon. (Round io two decimal piaces.) Fabulous Fabricakors neess to decide bow to allocale space is its production fackty fis yeat it is corsidering the folbaing ceraracts: a. What are the profitabicy indexes of the propets? b. What shouid Fabulous Fabricators do? a. What are the srofitablity indexes of ene projects? The prof tability index for careract A ia (Rtund to tao oecimal plates) You need a parficular pioce of equipment foc your production proces. An equipment tesesing company has offered to labse the equigment to you for s9, soo per year if you sign a quaratheed 5 year lease (the hase is fadd at the end of each year). The company would also maintain the equipment lor yes as pert of the lease. Aternatirely. you couid twy and mantain the equipment yourself The cash fisws trom doing se are lsted here: (the equement has an economic ite of 5 years) y your dscount fale is 6.6%, what should you da? The net present value of the leasing altomatlue ia 1 (Rhernd io the nearos dolias.) You are considering makng a movie. The movie is expectad to cont $10.9 milion up trond and lake a year to produce. Aher inat, it is eupected to meke 34.1 millon in the year it is feitased and 51.6 What is the payeack persd of thi investrien? The paysisk petod is years. (Round to one decimal place) You have just been offered a contract worth $1.16 milion per year for 7 yeans. Hewever, to take the contract, yeu will need to purchase some new equiptrent, Your discourt rahe for this project is 12.22. You ere stili nepotiating the purchase price of he equipment. What is the most yeu can pay for the equpmant and stis have a pos tive NPV? The most you can pay for the eesibment and acheve the 12.2% arcual rotum is 4 millon. (Round io two decimal piaces.)

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