In capital budgeting, positive net present value results in

In capital budgeting, a positive net present value (NPV) results in positive economic value added (EVA). EVA is a measure of a company’s profitability that takes into account the cost of capital. A positive EVA indicates that a company is creating value for its shareholders, while a negative EVA indicates that the company is destroying value.

Option A is incorrect because a negative NPV indicates that a project is not profitable.

Option B is correct because a positive NPV indicates that a project is profitable and is creating value for shareholders.

Option C is incorrect because a zero NPV indicates that a project is neither profitable nor unprofitable.

Option D is incorrect because percent economic value added is not a measure of profitability.