The return of principal at the end of ownership is known as return of investment or ______.

The term "capital recovery" refers to the process of reclaiming the invested principal at the end of ownership. This concept is fundamental in real estate and investment contexts, where an investor expects to recover the initial amount invested once the asset is sold or reaches the end of its useful life. Capital recovery signifies that the investor gets back their initial cash outlay, which is crucial for assessing the overall success of an investment.

Understanding this term is important because it helps differentiate between the return of the original capital and other financial outcomes, such as capital appreciation, which focuses on increases in value over time, or capital recapture, which is not a standard term used in investment analysis. Additionally, capital return is too vague and does not specifically denote the return of the original principal amount invested. These distinctions help in accurately assessing investment performance and making informed financial decisions.