When a company recoups its original investment, the company has received a
A)return on investment.
B)return of investment.
C)return of contribution.
D)hurdle rate.

Question

Quizplus · Accepted Answer

When a company recoups its original investment, it has received a return of investment (ROI). This means that the company has received the initial amount of capital it had invested, indicating the break-even point has been reached. A return on investment (ROI) would indicate a profit earned on the investment, which is not necessarily the case when the original investment amount is recouped. Return of contribution and hurdle rate are not relevant in this context.

When a Company Recoups Its Original Investment, the Company Has