The distinction between cash flows representing a return of capital and cash flows representing a return on capital is that:

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