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Management · Q450

Financial Management

Graduate and Post Graduate · Management · question 450

Q450

In capital budgeting, positive net present value results in

A.
negative economic value added
B.
positive economic value added
Answer
C.
zero economic value added
D.
percent economic value added

Answer: Option B

Solution

Answer: Option B
Solution:
In capital budgeting, positive net present value results in positive economic value added. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.