Which of the Statements Below Is FALSE

question 5

Multiple Choice

Which of the statements below is FALSE?

• A)The profitability index (PI)decision criterion states: if PI > 1.0,accept the project.
• B)The profitability index (PI)decision criterion states: if PI < 1.0,reject the project.
• C)The profitability index (PI)method multiplies the Present Value of Benefits by Present Value of Costs.
• D)If the PI is greater than one,the benefits exceed the costs.

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Definitions:

Critical Thinking

The process of objectively evaluating claims, propositions, and conclusions to determine whether they follow logically from the evidence presented.

Objectively Evaluating

The process of examining something in an unbiased, impartial manner without allowing personal feelings to influence the assessment.

Naturalistic Observation

A research method involving the observation of subjects in their natural environment without any manipulation or interference.

Sociocultural Perspective

An approach in psychology that examines how societal and cultural factors influence behaviors and mental processes.