Which of the Following Statements Is False

question 38

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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Definitions:

Variables

Elements, features, or factors that can change or vary in an experiment or study, potentially influencing the outcome.

Types of Variables

Categories of variables in research, including independent, dependent, and control variables, among others.

Values of Variables

The specific amounts or categories that variables can take on in data collection and analysis.

Numeric Value

A quantitative measure expressed as a number, which represents a specific quantity or amount.