Which of the Following Statements Is FALSE

question 9

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.

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Definitions:

Π Network

A system of conjugated pi bonds in a molecule, allowing delocalized electron movement across the structure, affecting its reactivity and properties.

Anti-aromatic

Refers to cyclic compounds that do not follow the rules of aromaticity, often being less stable due to their electronic structure.

Nitrophenol

An organic compound consisting of a phenol group in which one of the hydrogen atoms is replaced by a nitro group (-NO2).

Acceptable Name

A name for a chemical compound that conforms to the rules of a recognized naming system like IUPAC, making it suitable for scientific communication.