In general terms,how much will a sound capital investment earn?

Question

Quizplus · Accepted Answer

A sound capital investment should not only earn back its original capital outlay but also provide a reasonable return on the investment. This return should be higher than what existing capital investments are generating to justify the risk and opportunity cost of investing in the project. However, it is unlikely that a capital investment will earn back its entire capital outlay by the midpoint of its useful life, making option D incorrect. Therefore, option C is the best choice as it accounts for both the recovery of the investment and the return on this investment.

In General Terms,how Much Will a Sound Capital Investment Earn