Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)The profitability index measures the value created in terms of NPV per unit of resource consumed.
• B)The profitability index is the ratio of value created to resources consumed.
• C)The profitability index can be easily adapted for determining the correct investment decisions when multiple resource constraints exist.
• D)The profitability index measures the "bang for your buck."

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