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(7) Which of the following statements on the profitability index is FALSE? A) The profitability index measures the value created in terms of Net PresentValue

image text in transcribed (7) Which of the following statements on the profitability index is FALSE? A) The profitability index measures the value created in terms of Net PresentValue (N PV) per unit of resource consumed. B) In the presence of a constrained resource, choosing the highest NPV projectmight not lead to the best decision. C) The profitability index rule should not be used if more than one of thecompany's resources are simultaneously constrained

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