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a) A) A return of capital is income and equals the discount rate multiplied by the investment amount, Whereas return on capital is the recovery of the original investment (or the return of principal)
b) B) A return of capital is the recovery of the original investment (or the return of principal) Whereas return on capital is income and equals the discount rate multiplied by the investment amount
c) C) A return of capital iscomputed for each period of the investment life, Whereas return on capital is not computed
d) D) A return on capital is computed for each period of the investment life, Whereas a return of capital is not computed
e) E) A and C are Correct
F) B and D are Correct
ROI=
Current Value of Investment−Cost of Investment----------------------
C Cost of Investment
Cash flow indicate the variation in the assets + profit
ash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses and changes resulting from amounts spent on investments in capital assets, such as plant and equipment.
B and D are correct.
* - Return of capital is a return from an investment that is not considered income
* - is a ratio used in finance, valuation, and accounting. The ratio is estimated by dividing the after-tax operating income by the book value of both debt and equity capital less cash/equivalents.
