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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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