Which of the following statements isFALSE?

A.The profitability index is calculated as the NPV divided by the resources consumed by the project.

B.If there is a fixed supply of a resourceavailable, you should rank projects by the profitabilityindex, selecting the project with the lowest profitability index first and working your way down the list until the resource is consumed.

C.The profitability index rule cannot handle situations in which multiple resource constraints exist.

D.If there is a fixed supply of resourcesavailable, so that you cannot undertake all possibleopportunities, then simply picking the highest NPV opportunity might not lead to the best decision.