Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)If there is a fixed supply of a resource available,you should rank projects by the profitability index,selecting the project with the lowest profitability index first and working your way down the list until the resource is consumed.
• B)Practitioners often use the profitability index to identify the optimal combination of projects when there is a fixed supply of resources.
• C)If there is a fixed supply of resources available,so that you cannot undertake all possible opportunities,then simply picking the highest NPV opportunity might not lead to the best decision.
• D)The profitability index is calculated as the NPV divided by the resources consumed by the project.

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Definitions:

Shelf-Facing

The practice of organizing and presenting products on retail shelves in a manner that makes them easily visible and accessible to customers, influencing their buying decisions.

Products

items or services offered for sale, including physical objects, digital goods, and services, created to meet consumer demands and needs.

Shelf

A physical structure in stores or warehouses for displaying or storing items.

Product Managers

Professionals responsible for developing strategies, defining features, and overseeing the development and marketing of a product throughout its lifecycle.