Another time$-$value$-$of$-$money$-$adjusted method that can be used to evaluate capltal budgnting profects is the profitability index $($Pl$),$ or benefit$-$cost ratio. Which of the following statements is false?

Although the P$9$ method works well for independent projects, a scale $($or dollar investment$)$ difference in mutually moxclushere proiects may cause NPV and PI to give different accept$/$reject decisions.

The PI for a project equals the present value of the future cash flows divided by the initial imvestment.

The best use for the PI method occurs when the firm is not restricting the amount of investment its makes.

Decision Rule for the profitability index: undertake the capital budgeting project if the PI is greater than $1\mathrm{.}0.$