Which of the Following Statements Is False

question 83

Multiple Choice

Which of the following statements is false?

• A) If there is a fixed supply of 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.

---

Definitions:

Verbal Description

involves conveying information or instructions through spoken or written words.

Predicate

In grammar, a predicate is part of a sentence or clause that tells what the subject is doing or what is being done to the subject; in logic, it refers to the part of a sentence or proposition that asserts something about the subject.

Phrase Structure

The organizational rules and patterns that determine how words and phrases combine to form sentences in a language.

Prototype

A prototype is an early sample, model, or release of a product built to test a concept or process, serving as a typical example of a category.